Direct investment in Turkey estimated at $3.8 billion

Direct investment in Turkey is projected to amount to $3.8 billion in 2005, up from $2 billion last year owing to privatization of Tüpraş, Tekel and some electricity producers, according to a recent report by the Institute of International Finance (IIF).

The report, dated Jan. 19, also suggested that net portfolio equity flows to Turkey are projected to increase to $1.5 billion this year from $1.2 billion in 2004.

The IIF report revealed that net private capital flows to all emerging markets in 2004 grew to an estimated $279 billion — a major increase over the 2003 volume of $211 billion and more than double the 2002 total of $125 billion.

The institute said 2004 total was the highest since 1997 and also forecast that total 2005 net private capital flows to emerging market economies would be close to last year’s total of $279 billion.

IIF officials suggested that private capital flows to emerging markets have been picking up in all areas, from long-term direct investment, to bonds, portfolio equity and commercial bank lending.