Türkiye ranks 4th in Europe for FDI projects in 2023

Increasingly competitive, Türkiye secures fourth place in European foreign direct investment projects for 2023, contrasting with a continent-wide downturn in investment, particularly notable in Germany

In 2023, Türkiye secured the fourth spot in Europe for foreign direct investment (FDI) projects, marking a 17% increase from the previous year.

Despite this positive trend, Europe as a whole experienced a 4% decline in FDI projects compared to the previous year, with a total of 5,694 projects recorded, according to data released by EY, a London-based accounting services firm.

The report highlighted a broader trend of decreased investment activity in Europe, which was 11% lower than pre-pandemic levels in 2019 and 14% lower than the peak year of 2017 for FDIs.

France maintained its position as the leading destination for FDI in Europe for the fifth consecutive year despite a 5% decrease in the number of projects. Meanwhile, the U.K. secured the second spot with a 6% increase in FDI projects.

Germany experienced a notable decline in foreign investment projects, with a 12% decrease compared to the previous year, marking the lowest level since 2013. This decline raised concerns, as Germany has seen a 35% decrease in FDI projects since 2017, signaling a potential lag in investment activity.

U.S.-based firms remained the top foreign investors in Europe, although their investments decreased by 15% overall. In Germany specifically, investment from U.S. firms decreased by 22% in 2023, with Chinese firms emerging as the second most prominent group of investors in the country.

Overall, while Türkiye saw a significant increase in FDI projects, the broader trend in Europe reflected a decline in investment activity, particularly in Germany, raising concerns about the country’s competitiveness in attracting foreign investment.

Source: Newsroom