20 Billion Dollar Record Investment Outflow from Turkey to Abroad

Record Migration from Turkey Abroad: 20 Billion Dollars

While the Turkish economy undergoes a significant transformation, fluctuations in Borsa Istanbul have begun to direct investors towards alternative markets. The new balance of payments data released by the Central Bank (TCMB) reveals that the investment flow from Turkey to abroad has reached record levels. In August, portfolio investments made abroad were recorded at 1 billion 175 million dollars. This figure has reached a total of 10 billion 407 million dollars in the last 12 months, surpassing the 10 billion dollar threshold for the first time.

Turkish Investors Are Turning Abroad

As interest from Turkish investors in foreign markets increases, overseas portfolio investments have surpassed foreign investors' purchases of stocks and bonds in Turkey. In August, foreign portfolio investments in Turkey remained at 513 million dollars, while in the last 12 months this figure amounted to 9 billion 970 million dollars. Thus, Turkish investors have significantly directed their investments abroad.

Investments Remaining in Turkey Against Foreign Investments

Although the TCMB does not detail the breakdown of foreign portfolio investments in terms of stocks and bonds, according to international direct investment position data, it is noted that domestic residents have made a 2.2 billion dollar investment in foreign stocks, 2 billion dollars of which is in the USA. Additionally, during the same period, 1.3 billion dollars of the 2.2 billion dollar foreign bond investment is also located in the US markets.

Real Estate Investments Are Increasing

Investors are not only limited to stocks and bonds but are also turning to real estate investments abroad. In August, direct investments abroad reached a record of 9.1 billion dollars, of which 2.6 billion dollars consisted of real estate purchases. In total, the overseas investments made by residents in the last 12 months amounted to 20 billion dollars. In contrast, the direct investments of foreigners in Turkey reached 15.6 billion dollars, of which 2.2 billion dollars correspond to real estate purchases.