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Briefing on foreign investment and the Turkish economy
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Briefing on foreign investment and the Turkish economy

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10th August 2017

Foreign investment remains vital to the health of the Turkish economy, by securing its return over the short-term the government has averted a financial crisis but vulnerabilities remain.

  • The Turkish economy has been spurred by growing foreign investment after a period of political and economic instability
  • Government action has helped to secure investor confidence in the short term, resulting in rapidly growing economy buoyed by a bullish stock market
  • However, more stable sources of foreign direct investment continue to be held back by a series of international disputes with Europe and the Gulf

The Istanbul stock exchange hit record highs this week amid signs that the Turkish economy is set to continue to grow rapidly in 2017. With investor confidence growing, Turkey’s GDP is projected to increase by at least 5% this year, and the Borsa Istanbul 100 Index has risen by more than 40% since January, the second biggest rally anywhere in the world. This rapid growth has been driven by an influx of foreign investment…

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Photo credit: Mersin Port Authority

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