Turkey: made-in-Italy exports keep pace, Italian investment contracts

According to data released by the Turkish Statistical Institute (TUIK) and compiled by ICE Istanbul, Turkey’s trade with the rest of the world totaled $240.5 billion in the first nine months of 2010, an increase of 22.41% compared to the same period in 2009. The trade deficit stands at $55.1 billion (+83% compared to 2009).Turkey Export Made in Italy

Italy remains in fourth place among partner countries, with total trade amounting to $13.6 billion (up 25.4% year-on-year compared to 2009), of which $8.3 billion consists of exports (up 35.6% year-on-year, with Italy ranking as the fifth-largest supplier) and 5.3 billion from imports (+12.5% year-on-year). Italy has a trade surplus of 2.9 billion USD.

Italy’s market share of Turkey’s total imports stands at 5.61%, a slight increase compared to recent years, driven primarily by exports of plant, machinery, and technology. It is clear that Turkey’s industrial base is becoming increasingly industrialized and is aiming for ever-higher levels of competitiveness. Hence the need to complement our exports with a greater number of industrial collaboration initiatives.

The data on foreign direct investment, however, show a contrasting trend. According to figures compiled by ICE Istanbul, also for the first nine months of 2010, such investments reached $5.2 billion, representing a 20.91% decrease compared to the same period of the previous year. Only real estate investments showed positive growth, rising from $1.233 billion in 2009 to $1.849 billion in 2010 (+50.1%). In 2010, Italy invested $38 million, a sharp decrease compared to 2009 (-85%). The European countries that invested the most in Turkey were the Netherlands, Germany, and France.

Of the 25,927 foreign companies operating in Turkey, 802 are Italian, accounting for 3.11%.

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