Turkish industrial sector faces collapse warnings amid economic pressure

Political figures in Turkey are warning of a potential collapse in the industrial sector due to high interest rates, inflation, and rising energy costs. Mühip Kanko of the Yeni Parti noted that manufacturers in industrial hubs like Kocaeli are struggling with financing and shrinking domestic demand.

Kanko highlighted Vestel as an example of the economic pressure, noting a significant decrease in the company's workforce between late 2024 and mid-2026. He argued that the shrinking of factories and the postponement of investments reflect the true state of the economy.

Similarly, Cafer Arslanboğa of the Yeniden Refah Party criticized current economic policies, stating that producers and exporters are being penalized while speculation thrives. He pointed to a decline in capacity utilization rates, specifically noting that the machinery sector has dropped to 63 percent. Arslanboğa also cited the 1,240 concordat applications filed in the first half of the year as evidence of the severe financial distress facing the real sector.