Balance Sheet Impacts of the Monetary Tightening Period in the Manufacturing Industry
According to TURKSTAT and CBRT data, monetary tightening between 2023 and 2025 increased the turnover of the manufacturing industry while narrowing profit margins and increasing the debt burden.
The Sectoral Balance Sheets results, prepared in cooperation with the Turkish Statistical Institute and the Central Bank of the Republic of Turkey, revealed the deterioration experienced in manufacturing industry balance sheets during the monetary tightening process covering the years 2023-2025.
Nominal Increase in Turnover and Exports
Net sales of manufacturing industry companies rose from 15 trillion 50 billion TL in 2023 to 22 trillion 293 billion TL in 2024 and 28 trillion 401 billion TL in 2025. The sector's net sales recorded a nominal growth of 88.7 percent over 3 years.
High Financing Expenses and Operating Profit
While the financing expenses of the manufacturing sector stood at 785.5 billion TL in 2023, they reached 1 trillion 550.3 billion TL in 2025. During the tightening period, industrialists paid approximately 70 TL of every 100 TL of profit earned from their main operations toward financing costs.
Foreign Exchange Losses and Exchange Rate Pressure
As a result of implemented exchange rate intervention and foreign exchange liquidity measures, the sector's net foreign exchange loss reached 251.5 billion TL in 2025. The 3-year cumulative net exchange rate loss stood at the level of 277 billion TL.
Contraction in Net Profit Margin
The period's net profit of the sector declined from 1 trillion 119 billion TL in 2023 to 561.9 billion TL in 2024. The industrialist's net profit margin also recorded a decline in the following years from the 7.44 percent level in 2023.
Borrowing and Equity Balance
Total debts of the manufacturing industry surged by 99.9 percent in the 2023-2025 period, increasing from 8.82 trillion TL to 17.62 trillion TL. The ratio of the sector's total debt to total assets rose to 53.3 percent.
Slowdown in Investment and R&D Expenditures
High borrowing costs overshadowed the manufacturing industry's future-oriented investments. The sector's R&D expenditures remained at the level of 103.2 billion TL in 2025, and investment decisions slowed down.
Increase in Doubtful Receivables
The doubtful trade receivables item of the manufacturing sector increased during the monetary tightening process. The amount of doubtful receivables, which was 44.5 billion TL in 2023, rose to 82.7 billion TL in 2025.