Foreign investments

Turkey after a greater share of foreign investment: Erdoğan

Turkey’s foreign direct investment strategy will serve as a roadmap to secure value-added financing in sectors the economy needs, the country’s president said on Tuesday.

“The main goal (of the roadmap) is to increase our market share in global direct investment to 1.5% by 2023, in line with the 11th development plan,” President Recep Tayyip Erdoğan said. .

He was drawing up a new strategy document for 2021-2023 issued by the country’s Investment Office and published in the Official Gazette.

Thanks to its advantageous location, Turkey has access to a huge $26 trillion (TL 226.29 trillion) market and 1.3 billion people within a four-hour flight, Erdoğan noted.

Besides these trade advantages, Turkey is one of the most reliable routes for transporting energy resources to European countries on the east-west route, he added.

Highlighting that Turkey has succeeded in attracting around $225 billion in international direct investment since 2003, the president said companies that choose to invest in the country have increased their investments over time and “positioned our country as a center of production, export and management”.

The government is committed to improving Turkey’s economic development and investment environment by joining forces with existing investors and new entrepreneurs in the coming period, he stressed.

“To this end, under the coordination of our Presidential Office of Investments, we have prepared our country’s international direct investment strategy in cooperation with all relevant public and private institutions.

The president noted that Turkey enacted a special law in 2003 that provides guarantees for international direct investment, adding that Ankara has also signed mutual investment protection and double taxation prevention agreements with many countries.

Strong rebound

Separately, addressing the Qatar Economic Forum via video message, Erdoğan said strong gross domestic product (GDP) growth of 7% in the first quarter of the year boosted prospects for the rest of the world. year.

The Organization for Economic Co-operation and Development (OECD) predicts the economy is expected to grow 5.7% this year and 3.4% in 2022.

This, Erdoğan said, is one of the strongest rebounds among OECD member states.

“Hopefully we will exceed these projections,” the president noted.

Turkey’s economy grew 1.8% in 2020, one of the few in the world to avoid a pandemic-induced contraction thanks to a credit boom led by state lenders in mid-year.

The recent strong momentum of COVID-19 vaccinations in the country, which has seen more than one million doses delivered every day over the past week, also raises hopes for strong economic performance in the second half of the year.

JP Morgan last week revised its full-year economic growth forecast to 6.8%, citing the pace of vaccinations.

Turkey has started easing restrictions in recent weeks, limiting the lockdown to Sundays and opening restaurants to a limited number of customers, after daily cases began to fall from peaking above 60,000 in April.

Erdoğan said on Monday that Turkey would further ease restrictions from next month, after the number of daily cases in the country fell to around 5,000.

The confinements that had been imposed on Sundays and the curfews from 7 p.m. GMT on weekdays will be lifted from July 1.

Pointing to global economic figures that illustrate the scale of the fallout caused by the coronavirus pandemic, Erdoğan said the world’s least developed and developing countries had been “left to fend for themselves”.

“We are witnessing the same neglect displayed on vaccines,” he said, adding that global economic recovery would not be possible unless vaccines and medicines are made available to all countries in a way. fair.

A COVID-19 vaccine developed in Turkey is expected to be available by the end of 2021, Erdoğan said, adding: “I would like to share the good news that the COVID-19 vaccine developed by Turkey will hopefully be the, the vaccine of all mankind. , as well as our nation.

Erdoğan noted that while the pandemic threatens economies, it has also opened windows of opportunity.

Throughout the ordeal, Turkey shone not only in healthcare but also in production, logistics, public safety, employment and social assistance.

Turkey has started to stand out for its strategic location uniting three continents in the search for alternatives to the Asian-based production network, he added.

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