Turkish media reported that in the first eight months of this year, 994 companies filed for bankruptcy — a 73% jump compared to 2024. The most vulnerable sectors are construction, textiles, and food production, reflecting both structural weaknesses and the broader economic slowdown.

According to data from Turkey’s Chamber of Commerce and Industry, company closures between January and May 2025 increased by 12% compared to the same period last year. Economists attribute the crisis to high real interest rates, tight credit conditions, stubbornly high inflation despite some recent easing, and weakening domestic demand. 

Analysts warn that small businesses will remain at high risk in the short term, though a gradual fall in interest rates could help ease pressure by mid-2026.