YASED International Investors Association - the representative of the leading international investors in Turkey - has disclosed the results of its second Barometer Survey of 2009. International investors, according to the survey, which takes the pulse of YASED members, and updated every six months, consider that the adverse effects of the ongoing global crisis will come to an end after 2010.  Investors indicate that the new investment incentive system announced by the Government has not influenced their investment decisions and point out that the measures taken by the Government against the crisis are not satisfactory. Investors list the major issues of the coming term, which must be prioritized as, unemployment, structural reforms and an agreement with IMF - with respect to their significance levels; yet 40% of the members plan new investments in the coming term, conditional on the prospective economic developments.

YASED’s Barometer Survey, which reflects the views of international investors in Turkey on the economic and political developments that affect their investment decisions, has revealed striking results. According to the results of the Barometer Survey unveiled by Chairman Piraye Antika and Secretary General Mustafa Alper at a press meeting held with the participation of also the Board Members, 61% of international investors expect the effects of the global crisis to recede only after 2010. Investors indicate that a new period has started, where economic indicators and economic growth will remain steady during the next 6-month period, both in Turkey and in the world. Inflation and interest rates are also expected to remain unchanged and foreign exchange rates to move in line with the inflation rate in this period in Turkey.

YASED members have realized the production, turnover, profitability and export targets they had set for the first 6 months of 2009, to a great extent. While 42% of the international investors indicated that their employee numbers have “decreased” during the last 6-month period, 43% have stated that the figures have “remained unchanged” and 15% have affirmed that their employee numbers have “increased”.

Expectations for the improvement of the economic atmosphere are low

According to the Barometer Survey; whereas 37% of the investors concerned, consider that the global economic atmosphere will be more favorable for international direct investments, 29% suppose that it will will be less favorable, and 34% think that it will not change. Expectations for the improvement of the economic atmosphere in Turkey however are weak. While 40% of the international investors consider that the economic atmosphere will be less favorable for investing, 63% indicate that even the new incentive system proclaimed by the Government will not affect their investment decisions in the coming term. Whereas, the ratio of those who have replied negatively to the inquiry, “Do you plan any new investments in the coming term?” has not changed much since beginning of the year, and remained somewhat above 40%, another 40% of investors have indicated that they consider new investments depending on the prospective economic developments.

The biggest barrier to investment is the legal framework and implementation of laws

YASED members have indicated that the most adverse development that might affect international investments in Turkey in the coming term is a local economic crisis. The other adverse potential factors have been listed as a new economic fluctuation that might come about in the international markets and a local political crisis. The members, who were asked to specify the three major barriers to international investments in Turkey, have listed these as the legal framework and implementation of laws, economic instability, and unregistered economy. Whereas international investors have demanded that the Government should give priority to unemployment, structural reforms and an IMF Agreement in the coming term, 74% have indicated that they regard the measures taken by the Government during the crisis such as the ‘Employment Package’ prepared against the rising unemployment rate and the ‘Emergency Measures Package’  as being unsatisfactory.

Asked for their evaluation of the foreign capital perception in the public opinion, 45% of the members have replied that it has not changed, and 37% have replied that it better than before.



Barometer Survey Results 2009 – II (September 2009)