Türkiye ranked 4th last year in Europe for foreign direct investment projects: Data

Türkiye ranked fourth in Europe in 2023 in terms of the number of foreign direct investment (FDI) projects, which increased 17% year-on-year.

The total number of FDI projects across Europe fell 4% on an annual basis in 2023 to 5,694, according to data released Thursday by the London-based accounting services firm EY.

The report highlighted that investment activity in Europe was 11% lower than the pre-pandemic levels of 2019 and 14% lower compared to 2017, which was a record year in terms of FDIs.

France led Europe in the FDI ranking for the fifth consecutive year, despite a 5% decrease in the number of foreign investment projects, which fell to 1,194, the report said.

The UK ranked second with a 6% increase in the number of FDI projects, which soared to 985.

The report noted that foreign investors significantly reduced their activities in Germany last year as the number of projects was down 12% on an annual basis, calculated at 733, which was the lowest level since 2013.

The number of FDI projects by Türkiye in Europe rose 17% year-on-year in 2023, surpassing Spain and ranking fourth in Europe, right after Germany.

Türkiye had ranked fifth in 2022 with 321 projects.

US-based firms were the most important foreign investors in all of Europe, despite a 15% decrease in the number of investments last year.

The number of investments by US firms in Germany was down 22% year-on-year in 2023, followed by Chinese firms, which were the second most prominent group in Germany.

The report underlined that the number of foreign investment projects in Germany had fallen 35% since 2017, noting “an alarm signal for Germany,” as the firm's senior manager, Henrik Ahlers, said in the report that the country is “lagging behind.”