The Turkish economy stands out as a country with high growth potential, thanks to its geographical advantages and young population. The industrial sector is one of the cornerstones of economic development, with its central role in export revenues and job creation. However, macroeconomic problems such as high inflation, fluctuations in exchange rates, rising energy costs, and global supply chain issues make it difficult for industry to grow and maintain its competitiveness. Overcoming these challenges can be achieved through the adoption of technological innovations and the improvement of the investment environment. For Turkey to achieve its sustainable growth targets, the resolute implementation of industry-focused policies is of great importance.
Ömer KARADENİZ
PLASFED
Chairman of the Board
The Turkish economy has a multi-layered structure that is in constant change and transformation, influenced by both internal dynamics and global developments. Global economic fluctuations, energy crises, supply chain disruptions, and financial market volatility in recent years have seriously affected countries' economic planning and growth targets. Turkey is among the countries directly affected by these developments. However, Turkey's young population, strategic geographical location, developing production infrastructure, and dynamic workforce provide a strong foundation for the economy to overcome these challenges and progress towards sustainable growth.
Macroeconomic indicators provide important clues about the country's economic health, while also guiding which areas of growth potential need to be supported. The industrial sector has always played a central role in Turkey's economic growth. Key industrial branches such as manufacturing, automotive, textile, electronics, and machinery not only constitute a significant portion of the country's export revenues but also make critical contributions to job creation and technology development. The development and sustainability of these sectors are indispensable for Turkey's macroeconomic stability.
In addition, the plastics sector stands out as one of the important dynamics of Turkish industry. With its wide range of applications and high value-added potential, the plastics sector holds a strategic place in both the domestic market and exports. The use of plastic products in many areas, from packaging to automotive, from white goods to the construction sector, actively integrates the sector into the country's economic growth and innovation processes. When the development of the plastics sector is supported by the adoption of sustainable production techniques and high-tech investments, it is foreseen that it will increase the diversity in Turkey's industrial structure, thereby strengthening economic resilience.
However, the industrial sector faces a series of structural problems and external shocks. High inflation, fluctuations in energy costs, uncertainties in exchange rates, and increasing global competition negatively affect the cost structure and efficiency of industrial production. Furthermore, mismatches in labor quality and vocational training exacerbate the shortage of skilled labor needed by industry. All these factors highlight the need to strengthen the industrial sector, which is decisive in Turkey's achievement of its macroeconomic goals.
INDUSTRY PLAYS A BIG ROLE IN GROWTH
Stating that the industrial sector holds a critical place in Turkey's economic growth story, PLASFED President Ömer Karadeniz noted that the successes achieved by the manufacturing industry, especially in the automotive, textile, electronics, and machinery sectors, significantly contribute to the country's export revenues. Karadeniz stated that industrial production is also a vital element in financing the current account deficit, adding, "However, for industrial production to reach sufficient capacity for sustainable growth, it depends on investing in technology and innovation."
Karadeniz explained that the increase in energy costs and disruptions in global supply chains in recent years have put the industrial sector under pressure. Reforms in industrial policies will both increase production capacity and strengthen international competitiveness.
WE HAVE A YOUNG AND DYNAMIC POPULATION
Turkey's young and dynamic population is one of the most significant advantages of its labor market. The industrial sector plays a crucial role in creating employment, especially for skilled labor. However, there are mismatches between vocational training and labor skills. This situation causes unemployment rates to remain high, particularly among the young population. Training a workforce with the technical skills required by the industrial sector will both increase employment and boost productivity.
INFLATION AFFECTS INDUSTRIAL COSTS
High inflation in Turkey directly affects industrial production costs. Increases in raw material prices, energy costs, and exchange rate volatility reduce the profitability of industrial firms. While the Central Bank's monetary policy steps focus on controlling inflation, they are also critically important for balancing production costs.
Reducing the financing costs of the industrial sector and developing suitable credit mechanisms are essential for the continuity of investments. Long-term and low-interest financing options will be particularly encouraging for technology investments and capacity expansion.
INDUSTRY: THE BACKBONE OF FOREIGN TRADE
Industrial products constitute a significant portion of Turkey's export revenues. However, import dependency, especially in intermediate goods and energy resources, leads to problems in the foreign trade balance. This situation increases the impact of exchange rate fluctuations on industry.
To increase the competitiveness of industry, high value-added production, innovative products, and technology-intensive production should be prioritized. Increasing domestic production and strengthening supply chains will reduce foreign dependency. Furthermore, increasing export diversity will enhance resilience against economic shocks.
AN ATTRACTIVE ENVIRONMENT SHOULD BE CREATED FOR INVESTORS
Strengthening the legal infrastructure, reducing bureaucracy, and accelerating digital transformation are crucial to ensuring investor confidence. Improving the infrastructure and logistics facilities of industrial zones will create an attractive environment for investors.
Industrial policies to be developed through public-private sector cooperation, R&D incentives, technology development zones, and innovation centers will support Turkey's long-term growth in the industrial sector. Furthermore, moving towards sustainable and environmentally friendly production processes will provide a competitive advantage in both national and global markets.
MACROECONOMIC FUTURE DEPENDS ON STRENGTHENING INDUSTRY
Turkey's macroeconomic future will be shaped by the strengthening of its industrial sector. If supported by a dynamic young population, strategic investment policies, and technological innovations, Turkey can make significant progress on the path to sustainable growth. However, this requires the resolute implementation of structural reforms, ensuring economic stability, and prioritizing production-oriented policies.
Achieving balance in the economy will both reduce macroeconomic risks and increase Turkey's regional and global competitiveness. The industrial sector is ready to take on the role of both an engine and a catalyst in this journey.
This content has been translated using artificial intelligence technology.