Türkiye ranked fourth in Europe in 2023 in terms of the number of foreign direct investment (FDI) projects, according to a report by the London-based accounting services firm EY.
The number of FDI projects in Türkiye increased to 375 in 2023, a 17 percent jump from the previous year, creating more than 21,000 jobs.
The number of manufacturing projects decreased across the continent but increased in Türkiye by 12 percent, revealed the 23rd edition of EY Europe Attractiveness Survey.
France secured the most investment despite a 5 percent annual decline in the number of projects to 1,194 last year, said the report.
The U.K. ranked second, where the number of projects jumped 6 percent to 985. Germany came third following a 12 percent fall in investment to 733 projects.
After two successive years of growth, the post-COVID-19 pandemic recovery of FDI in Europe has stalled: 5,694 FDI projects were announced in Europe in 2023, down 4 percent from 2022.
Measured by the number of announced projects, FDI remains 11 percent below the level in 2019, just before the pandemic hit Europe, and 14 percent below the record high of 2017, said the report.
International investment decelerated due to disappointing economic growth, high inflation, rising global geopolitical tension and persistently high energy prices, especially when compared with the U.S., according to the report.
Most new projects in the next 12 months will focus on expanding existing assets, rather than the new greenfield developments associated with high-potential industries such as electric vehicles, life sciences, digital technology and renewable energy, it said.
The report warned that there are clear risks on the horizon: Increased regulatory burden and red tape, energy prices and supply issues, and political instability in a multi-election year.
