When will major Turkish industrial companies like Vestel and Arcelik recover?

Major Turkish industrial companies are expected to see recovery starting in the second half of 2026 as interest rates and inflation decline.

What challenges are facing Turkey's industrial sector?

The industrial sector faces challenges from high inflation, elevated interest rates, weak domestic and international demand, and increased labor costs.

How is Turkey's central bank impacting industrial companies?

The central bank's tight monetary policies, including high interest rates, have increased financing costs for industrial companies but are expected to ease, providing relief.

Home / Business and Economy / Turkish Industry's Comeback: Relief by 2026?

Turkish Industry's Comeback: Relief by 2026?

13 Jan

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Summary

Major Turkish industrial firms anticipate recovery by late 2026.
High inflation and interest rates have significantly impacted industrial output.
Weak domestic and international demand poses a major challenge.

Turkish Industry's Comeback: Relief by 2026?

Turkish industrial giants, including Vestel, SASA, and Arcelik, are projecting a return to profitability by the close of 2026. This anticipated recovery is linked to the government's successful efforts to curb high inflation, which has burdened the sector since mid-2023. The stringent monetary policies, characterized by elevated interest rates and a strong lira, coupled with subdued domestic demand, have led to significant losses and diminished international competitiveness for many manufacturers.

While the first half of 2026 is expected to remain challenging, with inflation at 31% and interest rates at 38%, a gradual easing is anticipated. Executives and analysts foresee demand picking up as interest rates and the lira stabilize at lower levels. SASA, a major polyester producer, expects improved domestic sales in 2026 due to falling interest rates, although the impact of high financing costs was a primary reason for losses in 2025.