Last year, Turkey attracted its largest amount of foreign direct investment (FDI), $16.8 billion, in the past seven years. In 2016, however, the tables have turned, with Turkey now on track to experience its lowest FDI in seven years.

According to Economy Ministry data, FDI in Turkey for the first half of 2016 plunged 54% compared to the same period last year, dropping to $4.8 billion from $10.5 billion. Of the $4.8 billion, $2 billion was in the form of real estate purchases by foreigners, a significant increase for that sector for the half year.

The lowest annual FDI in the past seven years, $9 billion, occurred in 2010. This year, with first-half FDI at $4.8 billion despite the significant boost from real estate purchases, the fear is that FDI might not reach its 2010 level.

The decline may yet worsen, because the effects of the July 15 coup attempt are not reflected in the half-year figures. In September, Moody’s followed Standard & Poor's and downgraded Turkey’s credit rating to “junk” — below speculative/non-investment grade — sending a warning of major risk to foreign investors. In an apparent attempt to soothe public concerns over the downgrade, Prime Minister Binali Yildirim responded, “Our credit rating is not decided by [a few] rating agencies, but shopkeepers.”