Turkey's industrial production growth reaches its fastest rate in close to 1.5 years
Turkey's industrial output experienced its fastest annual growth in over 1.5 years, with an 8.3% year-on-year increase in June 2025, marking the highest rate since February 2024[1].
Breaking down by sector:
- Manufacturing, which encompasses machinery, textiles, vehicles, and other factory-produced goods, led this growth with a 9.5% annual increase.
- The mining and quarrying sector grew more modestly by 2.3% annually, although it saw a short-term monthly decline.
- The electricity, gas, steam, and air conditioning supply sector declined by 1.1% year-on-year, marking a contraction.
- Monthly data also showed a 0.9% rise in manufacturing output and a 1.9% increase in energy production compared to May 2025, while mining output dropped 5% monthly[1].
Factors contributing to this robust growth include:
- A significant expansion in high-technology products, such as electronics, medical devices, and aerospace components, which recorded the largest annual increase within subgroups[1].
- Government-led strategies emphasizing value-added production, increased employment, and export growth as expressed by Industry and Technology Minister Mehmet Fatih Kacir[1].
- The rise of Türkiye’s automotive sector, now the 12th largest globally, supported by R&D investments, foreign direct investment, and strong government incentives. By 2025, Turkey’s automotive industry reached an annual capacity of 1.2–1.5 million vehicles, driven by initiatives like the domestic electric vehicle brand Togg, producing nearly 50,000 EVs since 2023[2].
- The broader context of Turkey approaching the Fourth Industrial Revolution, characterized by adoption of next-generation technologies and shifts toward clean energy, further underpins industrial modernization and growth[2].
Together, these sector-specific advances and strategic policies are sustaining Turkey's rapid industrial output growth over the past 18 months, especially in manufacturing and technology-intensive industries[1][2].
Of the 12 sub-sectors measured, 10 posted annual rises, while 2 declined. The highest increase in the industrial production index occurred in the high-tech product group. The electricity, gas, and steam index decreased by 1.1% year-on-year, while the industrial production index rose by 0.7% monthly in June[1]. This growth in industrial output was last seen in February 2024, when it surged by 11.2%.
[1] Turkish Statistical Institute (TÜİK). (2025). Industrial Production Index (IPI) [Data file]. Retrieved from https://www.tuik.gov.tr/PreliminarIndustrialProductionIndex
[2] Ministry of Industry and Technology. (2025). Strategic Policies for Industrial Growth. Retrieved from https://www.sanayi.gov.tr/strategic-policies-for-industrial-growth
- The growth in Turkey's industrial output is primarily attributed to the significant expansion in high-technology products, such as electronics, medical devices, and aerospace components, which registered the largest annual increase within subgroups, and the rise of Türkiye’s automotive sector, supported by research and development investments, foreign direct investment, and strong government incentives.
- The finance sector's role in this growth is evident as Turkey's industrial growth is also sustained by government-led strategies emphasizing value-added production, increased employment, and export growth, as well as the adoption of next-generation technologies and shifts toward clean energy as part of the country's approach to the Fourth Industrial Revolution.
