Turkey's GDP contracted 3 percent in the last quarter of 2018 and the trend is expected to continue in 2019. The economy grew 2.6 percent as a whole in 2018, recording the weakest growth since 2009, according to Turkish Statistical Institute data.
Turkish companies that seek to escape from the economic downturn with minimum damage started making investments abroad.
According to the official data quoted by DW Turkish, not only companies but individual investors also tend to keep their savings abroad. The major reason for those foreign investments is reported as the increase in the risk perception in Turkey.
According to Central Bank data, residents of Turkey made direct investments abroad that worth 3 billion 997 million dollars in 2018. Thus, the total direct investments made by Turkish companies abroad increased by 26 percent compared to the previous year.
Turkish companies bought about 40 companies worldwide in the last year. Global Investment Holding's purchase of Dreamlines in Germany, Vestel's purchase of Haystack TV in the US, Trakya Cam's purchase of Sangalli Vetro in Italy and Alarko's purchase of Mosalarko in Russia are among the largest investments.
Not only companies but also individuals tend to move their savings abroad. According to the Central Bank's International Investment Position December 2018 data, Turkish citizens' accounts abroad increased by 6 percent compared to the previous year and reached 16.5 billion dollars.