UPDATE 1-Turkey 2009 FDI inflow seen down 20 pct - group

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ISTANBUL, March 11 (Reuters) - Foreign investment inflows to Turkey are seen shrinking 20 percent in 2009, though the country attracted more than $1 billion in foreign direct investment in January, a foreign investors association said on Wednesday.

Foreign direct investment into Turkey stood at $17.718 billion in 2008, down 19.6 percent from 2007, the Turkish Treasury said last month.

Analysts have expected Turkey to lure less foreign capital as the effects of a global credit crisis are felt.

The Treasury said previously that it saw 2009 foreign direct investment at $10 billion, which could account for some 40-50 percent of the current account deficit.

Foreign investment inflows have been crucial to helping Turkey rein in its current account deficit, which rose to $41.4 billion last year. (Reporting by Ceyda Caglayan)