Investments decline in Turkey

Investments in Turkey this year are expected to decline by 61.6 billion Turkish Liras in comparison to last year when they stood at 148.7 billion liras. The decline has been tied to the contraction in private sector investments.

Private sector investment, which totaled 169.7 billion liras in 2008, is expected to drop to 107.8 billion liras this year. Meanwhile, public sector investment, despite not having displayed much significant activity for the past two years, is expected to increase by 8.3 percent to 44.3 billion liras in 2010.

Next year, private sector investment is expected to increase 20.4 percent to 129.8 billion liras. The total investment volume is expected to be 174.1 billion liras in 2010 – a figure that is still well below figures for 2007.

According to the 2010 report of General Economic Goals and Investments, a total volume of 210.3 billion liras was invested in Turkey last year. Some 169.7 billion liras came from the private sector, while the remainder, 40.6 billion liras, was provided by the public sector.

Fixed capital investments, which include investments related to buildings, facilities and machinery, totaled 191.8 billion liras in 2008. Some 152.7 billion liras of that belonged to the private sector, while 39.1 billion liras was from public sector sources. Like the other types of investment, fixed capital investments are expected to decline to 160.2 billion liras this year in Turkey. Estimates suggest that the private sector will inject 121.8 billion liras of this figure, while the public sector will provide the remaining 38.4 billion liras.