Critique of Turkish Economy from NEW Party MP Özgür Karabat
YENİ Party Istanbul MP Özgür Karabat stated that the Turkish economy has shifted away from production toward an interest- and import-focused structure, criticizing the government's economic policies due to the contraction in industry and the tendency of companies to prioritize interest income over investment.
In statements made during August and September 2026, YENİ Party Istanbul MP Özgür Karabat argued that Turkey's current economic model is eroding its production capacity. Pointing to the decline in industrial employment and the growth in the foreign trade deficit, Karabat stated that large companies are focusing on high interest income instead of technology investments.
Decline in Industry and Employment
Karabat emphasized that the share of the industrial sector in employment fell from 20.7 percent in 2025 to 20.2 percent. Stating that these data are a concrete indicator that Turkey is moving away from production, the MP noted that while the share of high-tech products in manufacturing exports remained at 3.7 percent, their share in imports reached 12.1 percent.
Foreign Trade and Financial Data
Stating that the foreign trade deficit reached 65.8 billion dollars in the January-August period of 2026, Karabat argued that the current economic order is fueled by mechanisms such as hot money and carry trade. He also expressed that economic targets are not being met in an environment where the policy rate is 37 percent and annual inflation is 31.5 percent.
Interest Income-Focused Structure of Companies
Stating that he examined the financial balance sheets of large companies, Karabat claimed that the 6-month interest income of the 50 largest companies exceeded 100 billion liras. He argued that the shift of giant companies such as THY, Turkcell, Ereğli Demir Çelik, and Petkim toward interest income instead of factory or technology investments weakens Turkey's production capacity.