Turkish exporters warn of rising costs and market share loss

Mustafa Gültepe, President of the Turkish Exporters Assembly (TİM), has issued a warning regarding the declining competitiveness of Turkish industry. According to a report prepared with PwC Türkiye, rising domestic costs are causing Turkish exporters to lose market share to competitors such as Poland, Hungary, and Romania.

Between 2019 and September 2026, energy prices in Turkey increased 15-fold, minimum wages 13-fold, and raw material costs 12-fold. In contrast, annual inflation in competing nations remained below 8% during the 2019–2025 period. This cost divergence has led to a significant impact on the manufacturing sector, where the number of insured employees has decreased by 480,000 over the last four years.

Gültepe noted that Turkey’s share of global exports fell from 1.08% to 0.98% in the last two years. He emphasized that while Turkey maintains strong production capacity and fast delivery, the 50–60% higher costs in dollar terms make it difficult to compete, especially as China redirects product volumes toward Turkish markets and the European Union pursues policies to keep production within its own borders.