Financial Burden of the Manufacturing Sector Increased During Monetary Tightening
According to TURKSTAT and CBRT data, while the monetary tightening in the 2023-2025 period increased the turnover of the manufacturing sector, it multiplied debt and financing costs.
Sectoral Balance Sheets results prepared in cooperation with the Turkish Statistical Institute and the Central Bank of the Republic of Turkey revealed that despite an increase in net sales of the manufacturing sector during the monetary tightening process covering the years 2023-2025, a deterioration occurred in the balance sheet structure due to high borrowing costs and exchange rate pressure.
Net Sales and Export Growth
Net sales of manufacturing industry companies reached 15 trillion 50 billion TL in 2023, 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 in 3 years.
Overseas sales stood at 3 trillion 831 billion TL in 2023, rising to 5 trillion 807 billion TL in 2024 and 7 trillion 426 billion TL last year. The share of overseas sales in gross sales remained stable at around 24 percent.
Financing Expenses and Operating Profit
With the gradual increase in the policy rate, the manufacturing sector's financing expenses reached 785.5 billion TL in 2023, 1 trillion 171.3 billion TL in 2024, and 1 trillion 550.3 billion TL in 2025.
While industrialists had to pay approximately 70 TL of every 100 TL earned from operating profit to banks and financing expenses, total financing expenses amounted to 3 trillion 507 billion TL.
Foreign Exchange Balance and Exchange Rate Losses
Exchange rate intervention and foreign exchange liquidity steps during the tightening period negatively affected the foreign exchange balance of the manufacturing sector. The sector's net foreign exchange loss reached 251.5 billion TL in 2025.
While the three-year cumulative net exchange rate loss was recorded as 277 billion TL, foreign exchange losses materialized at the level of 1 trillion 851 billion TL in 2025.
Net Profit and Decline in Profit Margin
The period net profit of the manufacturing sector declined from 1 trillion 119 billion TL in 2023 to 561.9 billion TL in 2024. In 2025, it recovered and rose to 873.9 billion TL.
The net profit margin fell from 7.44 percent in 2023 to 2.52 percent in 2024, and slightly recovered to remain at 3.08 percent in 2025.
Borrowing and Equity Structure
Total debts of the manufacturing industry multiplied by 99.9 percent in the 2023-2025 period, surging from 8.82 trillion TL to 17.62 trillion TL, while equity growth remained at 55.8 percent.
While 13.06 trillion lira of the total debts consisted of short-term resources, financial debts doubled in 3 years to skyrocket to 6.92 trillion TL.
Investment, R&D, and Doubtful Receivables
While the R&D expenditures of the manufacturing sector remained at the level of 103.2 billion TL in 2025, investments in progress showed an increase of only 2.9 percent on a nominal basis.
The amount of doubtful trade receivables of the sector rose from 44.5 billion TL in 2023 to 58.4 billion TL in 2024 and 82.7 billion TL in 2025.