One in Three Turkish Businesses Shutting Down Amid Economic Strain
Closed Businesses
CHP Kayseri Deputy Aşkın Genç has raised alarm over Türkiye’s worsening economic climate, revealing that business closures have reached their highest level in a decade. Speaking in Parliament, Genç stated that as of May 2025, nearly one out of every three businesses in Türkiye has failed to survive, underlining a growing crisis within the real sector.
Business Closure Rate Jumps to 29% in 2025
Citing official figures, Genç pointed out that in 2024 alone, 31,416 companies shut down, reflecting a 21% increase from the previous year. Even more concerning, 11,440 businesses have already ceased operations in the first five months of 2025.
According to Genç, the business closure rate has soared from 13% in 2022 to 29% by May 2025—the highest rate recorded in the past ten years. “This means that one in every three businesses can no longer remain afloat,” he emphasized.
Kayseri Example: Real Sector Bleeding
Using Kayseri as a case study, Genç highlighted how local industry is being hit hard by rising raw material, energy, and financing costs. One of the city’s well-known brands, İpek Mobilya, has announced it is halting production due to unsustainable input costs—a move Genç said reflects a wider breakdown in Türkiye’s manufacturing base.
“When a key player in Kayseri’s industrial ecosystem halts operations, it’s not just a furniture company that suffers—it disrupts the entire supply chain,” Genç warned.
“The Growth Narrative Is Collapsing on the Ground”
Criticizing the government’s claims of economic growth, Genç said the on-the-ground reality paints a different picture:
“The so-called ‘growing economy’ is collapsing with each shuttered factory and unemployed worker. If this breakdown in the production chain isn’t stopped, it won’t just be businesses that fail—the foundations of Türkiye’s economy will fracture.”
Urgent Call for Structural Reform
Genç concluded his remarks by urging the government to take emergency steps to prevent further closures and implement long-term structural reforms to ensure economic sustainability. Without swift action, he warned, the collapse of small and medium-sized enterprises could spiral into a wider economic breakdown.