As Turkey grapples with unprecedented economic challenges, the nation is setting its sights on attracting foreign investments in 2024 to bolster its economy.
According to Engin Aksoy, Chair of the International Investors’ Association, Foreign Direct Investment (FDI) inflows into Turkey reached $10.6 billion in 2023, marking a significant effort to stimulate economic growth.
Despite a slight dip from the $13.7 billion recorded in 2022, Turkey’s shift in economic strategy under Finance and Treasury Minister Mehmet Simsek since June 2023 has garnered renewed interest from foreign investors.
However, observers note that direct foreign fund inflow remains constrained as Turkey faces challenges such as a widening current account deficit and currency depreciation.
Analysts speculate that a potential resurgence in foreign investment could follow Turkiye’s municipal elections scheduled for the end of March. Mustafa Sonmez, an Istanbul-based economist, suggests that while short-term investments may increase, long-term sustainability hinges on regulatory improvements and structural reforms.
Turkiye aims to diversify its foreign investment sources by actively engaging with partners from the European Union and Middle Eastern countries, with plans to involve oil-rich Gulf nations in infrastructure megaprojects like the Istanbul Canal and city hospitals.
As the nation navigates its economic landscape, sustained efforts to enhance macroeconomic stability and regulatory frameworks will be crucial in attracting and retaining foreign investments for Turkey’s economic revival.
