March 2025

Türkiye experienced economic growth that exceeded market expectations in 2024. According to official figures published by the Turkish Statistical Institute (TurkStat), the country recorded a growth rate of 3.2%, surpassing forecasts that were around 3%. The national GDP reached 43.4 trillion Turkish lira (1,248 billion EUR), marking an impressive 63.5% increase compared to the previous year.

Despite this positive economic performance, inflation remains a major challenge for the country. Although inflation has shown signs of slowing, it remains at high levels. In February 2025, annual inflation dropped to 39.05%, after peaking at 42.1% in January, indicating a slight improvement.

On March 19, 2025, Türkiye was shaken by the arrest of Ekrem Imamoglu, the mayor of Istanbul and the main political rival of President Recep Tayyip Erdogan. This event triggered a sharp decline in Turkish financial markets. The Turkish lira lost 12% of its value, reaching a record low of 42 lira per dollar. The currency then continued to fluctuate before experiencing a slight recovery following an intervention by the Turkish Central Bank. The Istanbul Stock Exchange faced significant volatility, with a temporary suspension of trading on the main index, followed by a sharp drop at closing. As of March 25, the financial markets have stabilized, once again highlighting Turkey's ability to overcome turbulence and demonstrate its long-term economic resilience.

Despite this political and economic instability, Türkiye remains attractive to foreign investors. Many international companies are strengthening their presence in the Turkish market. The automotive sector, in particular, continues to receive significant investments.

Economic & business news from Türkiye

Türkiye records 3.2% growth in 2024

The Turkish Statistical Institute (TÜİK) has released Türkiye’s economic growth figures for 2024. GDP grew by 3.2%, reaching $1.322 trillion, with a per capita GDP of $15,463. The construction sector was the main driver of this growth, posting a 9.3% increase.

Other sectors contributing to this growth:

• Net product taxes (after subsidies): +7.7%
• Finance and insurance: +4.9%
• Agriculture: +3.9%
• Information and communication technologies (ICT): +3.4%
• Services: +3.1%
• Real estate: +2.4%
• Public administration, education, health, and social work: +1.8%
• Professional, administrative, and support services: +1.4%
• Other services: +1.2%
• Industry: 0.5%

Household consumption increased by 3.7% in 2024, accounting for 59.2% of GDP. Exports of goods and services rose by 0.9% compared to the previous year, while imports declined by 4.1%.

Quarterly growth trends: Q1 2024: +5.7% | Q2 2024: +2.5% | Q3 2024: +2.1% | Q4 2024: +3.0%

Source: Dünya, February 28, 2025

Q4 2024 growth: Türkiye leads the G20

The OECD has released the G20 growth figures for the last quarter of 2024, and Türkiye stands out as the most dynamic economy, recording a 1.7% increase—well above the G20 average of 0.9%. While Türkiye achieved this strong performance, other countries also maintained positive momentum, albeit at a slower pace:

• China & India: +1.6%
• Indonesia: +1.%
• United States: +0.6%
• European Union: +0.4%
• United Kingdom: +0.1%

Conversely, several major economies showed signs of slowdown:

• Germany: -0.2%
• France: -0.1%
• Mexico: -0.6%

Türkiye benefits from a combination of structural and cyclical factors, including strong domestic demand, high export capacity, and strategic investments in industry and infrastructure. This growth reaffirms Türkiye’s position as a #key #economic #player within the G20, despite an uncertain global environment.

Source: Dünya, March 13, 2025

Chery invests $2 Billion in Türkiye

Chinese automaker CHERY has announced a major investment of $1.5 to $2 billion in the northern Turkish city of Samsun, where it will establish a new production plant. This large-scale investment is set to create 25,000 jobs and support an annual production capacity of 150,000 electric and hybrid vehicles—a key step in Türkiye’s transition toward a more sustainable and technologically advanced automotive industry.

Beyond its direct economic impact, this investment underscores Türkiye’s growing appeal for global automotive giants. The elimination of customs duties on locally produced vehicles is also expected to reduce costs and enhance market competitiveness. This decision follows a $1 billion investment by Chinese giant BYD in Manisa (western Türkiye), where it plans to produce 150,000 vehicles annually and establish a R&D center.

With these massive investments, Türkiye is solidifying its position as a key player in the global automotive industry, attracting major brands and accelerating its transition to cleaner, more innovative technologies. This marks a significant milestone for the future of the sector and a unique opportunity for the expansion of the electric vehicle ecosystem in Türkiye.

Source: Dünya, February 25, 2025

Hyundai chooses Türkiye for EV production

Hyundai Motor Türkiye has announced a strategic expansion with the launch of electric vehicle (EV) production at its Izmit plant starting in the second half of 2026. This move aligns with Hyundai’s goal of offering only zero-emission vehicles in Europe by 2035, reinforcing its key role in the European automotive market while supporting Türkiye’s industrialization and economic growth.

As Hyundai Motor Group’s first international manufacturing site and its longest-operating foreign plant, Hyundai Motor Türkiye has produced over 3 million vehicles in 28 years. The company remains committed to local sourcing, with more than 55% of components manufactured in Türkiye through a network of 50+ suppliers—a ratio it aims to maintain for EV production at the Izmit facility.

With this initiative, Hyundai Motor Türkiye is strengthening its manufacturing capabilities and environmental commitments. The local production of EVs contributes to the transition toward greener mobility, addressing the rising European demand for sustainable solutions.

Once again, Türkiye confirms its attractiveness as a major industrial hub for electric mobility, following Chery’s recent large-scale investment to build its own EV production plant in the country. Meanwhile, Hyundai will continue producing internal combustion engine (ICE) models to meet diverse market needs.

Source: Dünya, March 3, 2025

Medicalgorithmics expands into the Turkish market

Medicalgorithmics S.A., a Warsaw Stock Exchange-listed medtech company, continues its international expansion, making Türkiye its 23rd market. The company has signed a distribution agreement with Ege Aritmi, enabling it to introduce its innovative cardiac diagnostic solutions in Türkiye, where it expects to generate an annual revenue of 1.5 million PLN.

Türkiye is emerging as a key market for medical technologies, with strong growth potential and rising investment opportunities. By 2025, the Turkish medical device market is expected to reach $5.4 billion, with the cardiology segment estimated at $889 million. The sector is projected to grow at an annual rate of 5.09% from 2025 to 2029, reaching $6.59 billion by 2029.

Medicalgorithmics specializes in advanced medical technologies, particularly in cardiac diagnostics. The company develops AI-driven ECG analysis solutions used in clinical settings and medical research.

This expansion aligns with Medicalgorithmics’ global strategy, which already covers Europe, North America, the Middle East, and Asia. Simultaneously, the company is strengthening its presence in clinical research, collaborating with leading international institutes.

Medicalgorithmics’ investment in Türkiye highlights the country’s attractiveness for medtech companies and reinforces its growing role in global medical innovation.

Source: Medicalgorithmics Press Release, March 3, 2025

New digital corridor between Türkiye and Europe

Italian telecom company Sparkle and Turkcell have signed a Memorandum of Understanding (MoU) to develop a new submarine cable connecting Izmir (Türkiye) to Chania (Crete, Greece).

The upcoming cable will stretch approximately 4,000 km and provide a transmission capacity of over 25 Tbps per fiber pair. It will complement the existing Mediterranean infrastructure by integrating into the BlueMed network, which already connects multiple European countries. From Chania, the cable will be directly linked to Sparkle’s Milan hubs, further enhancing Türkiye-Europe digital integration.

This initiative aligns with broader efforts to strengthen global telecom resilience. While Türkiye already has a terrestrial fiber network bridging Asia and Europe, its submarine connections to Europe remain limited. This new cable will diversify existing routes, reducing dependence on current infrastructure.

Sparkle plays a key role in global digital connectivity, operating over 600,000 km of submarine cables linking Europe, the Americas, and strategic regions worldwide. The company also manages data centers in Greece, Sicily, and Türkiye and is involved in major undersea cable projects. In January 2024, Sparkle announced the GreenMed project, a new submarine network connecting Italy, Croatia, Montenegro, Albania, Greece, and Türkiye.

This project represents a major milestone in telecom infrastructure development, positioning the region as a global digital hub.

Source: Data Center Dynamics, March 10, 2025

Vesuvius acquires PiroMET and expands into Türkiye

British industrial giant Vesuvius continues its global expansion with the acquisition of a 61.65% stake in PiroMET, a leading Turkish refractory and mining technology company, for €26.2 million. This strategic move strengthens Vesuvius' foothold in a key market.

Founded in 2008 with 100% Turkish capital, PiroMET has established itself as a major player in refractory technologies. The company utilizes local raw materials, including magnesite, to develop advanced solutions for the global steel industry. It operates two strategic production sites:

Dilovası (focused on alumina-based refractories and engineering services).

Kütahya (its main 56,000 m² facility, dedicated to magnesite-based refractories).

Founded in London in 1704, Vesuvius is a world leader in refractory materials and technologies, operating in 40 countries with over 11,200 employees and £1.9 billion in revenue (2023). The company is listed on the London Stock Exchange and ranks among the 10 oldest industrial firms in the UK.

This acquisition reinforces Vesuvius' expertise in Türkiye, a strategic industrial and logistics hub between Europe and Asia. By integrating PiroMET, Vesuvius enhances its ability to supply high-quality refractory solutions to the global steel industry.

Source: Dünya, February 25, 2025

National energy resources: strategic Türkiye-U.S. alliance

Turkish Petroleum Corporation (TPAO) is expanding its operations through a joint venture agreement with U.S. energy companies Continental Resources and TransAtlantic Petroleum, LLC. This partnership aims to develop shale deposits in Diyarbakır province, southeastern Türkiye, leveraging advanced technologies and environmentally responsible practices.

This agreement represents a milestone in Türkiye’s energy strategy, as the country seeks to reduce its reliance on imports and maximize the use of its domestic resources. Although not a major oil and gas producer, Türkiye is intensifying exploration efforts—notably in the Black Sea and southeastern Anatolia—to strengthen its energy sovereignty.

Beyond technology, the project also focuses on knowledge transfer and workforce development, creating new economic opportunities for the local energy industry.

This initiative is part of Türkiye’s broader international energy cooperation strategy. TPAO has already forged partnerships with Azerbaijan, Libya, Somalia, and Russia, while also exploring new opportunities in Libya. Additionally, Türkiye is deepening its energy dialogue with Egypt, with a particular focus on natural gas and mining sector opportunities.

Through diversification and regional partnerships, Türkiye continues to position itself as a key player in the global energy landscape.

Source: Daily Sabah, March 13, 2025

Benefit Systems moves closer to Turkish MAC Group

Polish company Benefit Systems SA has taken a major strategic step by signing a conditional agreement to acquire MAC Group, Türkiye’s leading fitness chain, currently owned by Turkish investment firms Actera Group and Esas Holding. The $420 million transaction is subject to approval by the Turkish Competition Authority.

This acquisition aligns with Benefit Systems’ international expansion strategy, which includes the opening of over 300 new fitness clubs by 2027, with a strong focus on foreign markets. Türkiye presents an ideal growth opportunity with its young, urban population and a rapidly growing fitness market.

MAC Group has shown strong financial performance, reporting $112 million in revenue and $50 million in EBITDA in 2024. The company operates 121 fitness clubs under the MAC Fit, MAC One, and MAC Studio brands. By the end of 2024, the group had 305,000 active users, while over 1.4 million people accessed its online services via its mobile app. Additionally, MAC Group owns Nuspa-branded spa centers.

Marcin Fojudzki, a Board Member of Benefit Systems, stated:

"The acquisition of MAC Group is the largest in our company’s history. It strengthens our position in Türkiye and significantly enhances our Multisport offering. We are confident that this opportunity will generate value for our shareholders."

With this acquisition, Benefit Systems aims to establish itself as a key player in Türkiye’s fitness market and accelerate its growth in the region.

Source: Benefit Systems Press Release, March 10, 2025