# Turkey early deindustrialisation risk > Live situation record from CLSTR: https://clstr.news/situations/turkey-early-deindustrialisation-risk > Updated: 2026-08-22T08:46:00.000Z. Sources: 11. Developments: 4. In late July 2026, the Istanbul Chamber of Industry warned that Turkey is heading toward early deindustrialisation, noting that manufacturing now contributes less than 20% of GDP and is dominated by low-technology production, limited equity, and heavy reliance on imported inputs. The chamber’s president cited a global slowdown, rising protectionism, and a weak European market as external pressures, and called for reinforcement of the economic programme through the new Strategic Transformation Centre and a Value-Focused Digitisation and Growth Program. By early August, the same warning was reiterated, emphasizing a possible “U-turn” that could reverse recent gains in industrial exports. The chamber outlined four priority areas to revive growth: expanding high-technology manufacturing in defence, electronics, semiconductors, biotechnology, and artificial intelligence; increasing R&D spending and fostering university-industry collaboration; upgrading vocational and technical education to meet industry needs; and accelerating digital transformation via factory automation, robotics, and the Internet of Things. In late August, Erdal Bahçıvan, president of the Istanbul Chamber of Industry, expanded his critique to include domestic monetary policy. Speaking at the 10th Istanbul Ready-to-Wear and Fashion Fair, Bahçıvan argued that economic programs over the last several years have prioritized inflation reduction at the expense of the industrial sector. He stated that high interest rates and financing costs are placing a heavy burden on manufacturing, which requires significant investment and working capital. Bahçıvan warned, “We are sacrificing Turkish industry for the sake of inflation. It has reached a breaking point,” and urged policymakers to prioritize production and exporter sustainability in the upcoming Medium-Term Program. Adding to these concerns, Abdurrahman Aslantaş, President of the Gebze Chamber of Commerce, identified high financing costs and economic contraction in the European market as primary challenges. ## Claims - High financing costs and the contraction of the European market are the primary obstacles facing industrialists. (corroborated by 3 sources) - A decline in orders from European Union countries is negatively impacting industrial production. (corroborated by 3 sources) - Rising labor and rent costs are placing significant pressure on businesses, particularly in labor-intensive sectors. (corroborated by 3 sources) - Incentives should focus on the production of goods that substitute imports to keep resources within the country. (corroborated by 3 sources) - Losing an export market carries the risk of requiring significant time and cost to regain, or potentially never re-entering it. (corroborated by 3 sources) ## Timeline ### 2026-08-22: Gebze Chamber of Commerce President warns of industrial challenges Gebze Chamber of Commerce President Abdurrahman Aslantaş warns that high financing costs and shrinking European markets are threatening Turkish industrial production and export stability. 4 sources. https://clstr.news/cluster/gebze-chamber-of-commerce-president-warns-of-industrial-challenges ### 2026-08-20: Istanbul Chamber of Industry warns inflation policies risk sacrificing Turkish manufacturing Istanbul Chamber of Industry President Erdal Bahçıvan warned that Turkey's focus on fighting inflation is sacrificing the industrial sector, stating that manufacturers have reached a breaking point. 5 sources. https://clstr.news/cluster/istanbul-chamber-of-industry-warns-inflation-policies-risk-sacrificing-turkish-manufacturing ### 2026-08-06: Turkey warned of industrial decline as chamber cites risk of a ‘U‑turn’ Turkey’s Istanbul Chamber of Industry warns of a possible “U‑turn” in manufacturing, urging high‑tech, R&D, education and digital upgrades to prevent deindustrialisation. 2 sources. https://clstr.news/cluster/turkey-warned-of-industrial-decline-as-chamber-cites-risk-of-a-uturn ### 2026-07-22: Turkey faces early deindustrialization, warns İSO President Erdal Bahçıvan İSO President Erdal Bahçıvan warned that Turkey’s manufacturing share is under 20 % of GDP, risking early deindustrialisation due to low tech, weak capital and import dependence, and called for stronger policy‑ 4 sources. https://clstr.news/cluster/turkey-faces-early-deindustrialization-warns-iso-president-erdal-bahvan --- Cite as: Turkey early deindustrialisation risk. CLSTR, https://clstr.news/situations/turkey-early-deindustrialisation-risk