June 2025

According to data released by TÜIK (Turkish Statistical Institute), Türkiye’s economy recorded a year-on-year growth of 2.0% in the first quarter of 2025, a performance slightly below market expectations (2.3%). This moderate expansion can be attributed to the impact of interest rates and an uncertain international environment. Although slower compared to previous quarters, this growth was mainly driven by private consumption and investment. On a seasonally and calendar-adjusted quarterly basis, GDP rose by 1.0%, indicating a slow but steady recovery in economic activity.

On June 19, the Central Bank of Türkiye (CBRT) decided to keep its policy rate unchanged at 46%. This decision confirms the continuation of a tight monetary policy until a sustained decline in inflation is achieved. In May, inflation stood at around 35.4% year-on-year, and indicators suggest a continued downward trend in June.

Internationally, tensions in the Middle East triggered a more than 20% increase in Brent crude prices in June, pushing the price towards $77 per barrel. Energy-importing economies like Türkiye are facing additional inflationary pressure, further complicating efforts to contain domestic prices.

Despite this international context marked by geopolitical tensions, persistent inflation, and volatility in energy and currency markets, Türkiye remains an attractive destination for foreign investors. The strength of its industrial base, its geostrategic position between Europe and Asia, and long-term opportunities in key sectors continue to encourage many international groups to strengthen their presence in the Turkish market. June thus saw several announcements of foreign investments, reaffirming continued interest in the country despite global uncertainties.

Economic & business news from Türkiye

Türkiye records 2% growth in Q1 2025

The Turkish Statistical Institute (TÜİK) has published Türkiye’s economic growth figures for the first quarter of 2025. Türkiye’s GDP increased by 2% year-on-year and by 1% quarter-on-quarter, both figures falling short of market expectations, which anticipated 2.5% annual growth and 1.4% quarterly growth. The construction sector was the main driver of this growth, posting a 7.3% increase.

Other sectors that contributed to this growth include:

• Information and communication activities: 6.1%
• Other services: 4.7%
• Professional, administrative, and support services: 4%
• Real estate activities: 2.4%
• Net taxes on products: 1.8%
• Services overall: 1.3%
• Financial and insurance activities: 0.5%
• Public administration, education, health, and social services: 0.3%

The agricultural sector contracted by 2%, and industry declined by 1.8%.

Final consumption expenditure of resident households increased by 2% in chain volume terms compared to the same quarter of the previous year. Government final consumption expenditure rose by 1.2%. Exports of goods and services slightly declined by 0.01% in chain volume terms compared to the same quarter of the previous year, while imports increased by 3%.

Source: TÜİK, May 30, 2025

2 major agreements signed between airbus & TUSAŞ

At the 55th Paris Air Show in Le Bourget, Turkish Aerospace (TUSAŞ) and Airbus officially signed two major new cooperation agreements.

The first agreement assigns TUSAŞ the production of the rudder for the Airbus A320, one of the most widely used aircraft in civil aviation. This collaboration will make TUSAŞ's plant in Kahramankazan (Ankara) one of the world’s most important sites for the manufacturing of this strategic component.

The second agreement concerns the production by TUSAŞ of metal parts for the upcoming Airbus A350F cargo aircraft. The Turkish company thus becomes the sole global supplier for these critical components that will equip all A350F units produced worldwide.

Already a long-standing partner of major global aircraft manufacturers, TUSAŞ contributes to numerous key programs: Airbus A220, A320, A330, A350, as well as Boeing 737, 767, 777, and 787 Dreamliner. Its teams manufacture critical elements ranging from flaps to landing gear panels, fuselage structures, and composite parts. Thanks to its expertise in composite materials—lightweight, durable, and environmentally friendly—TUSAŞ has established itself as a key player in the global aerospace supply chain and is actively shaping the future of aviation.

Source: Bigpara-Hürriyet, June 17, 2025

Major $500 million investment in a data center

Turkish e-commerce giant Trendyol, in partnership with Castle Investments, has announced a large-scale strategic project: the construction of a 48 MW data center in Ankara, set to become one of the largest data centers in Türkiye and the Middle East.

An initial investment of $500 million will be allocated in the first phase of this center, which will consist of 5 blocks.

The first unit, with a capacity of 9.6 MW, is scheduled to become operational in the third quarter of 2026.

40% of the capacity will be used by Trendyol, while the remaining 60% will be available to third parties—hyperscalers, cloud service providers, and local enterprises.

The center will be Uptime Tier III certified, ensuring top-level technical and operational standards.

This investment reflects Trendyol’s ambition to strengthen Türkiye’s digital sovereignty and technological appeal, while addressing the growing demand for data infrastructure in the region.

This strategic partnership with UAE-based Castle Investments, founded by expert Tarek Al Ashram, combines international expertise with local know-how, supported by both public and private stakeholders.

An emblematic project that will actively contribute to building a robust and sustainable digital ecosystem in Türkiye.

Source: Dünya, May 27, 2025

Raben Group launches operations in Türkiye

Dutch logistics company Raben Group continues its expansion across Europe with the official launch of its operations in Türkiye. Now present in 17 countries, this new foothold marks a strategic milestone for the company, further strengthening its independent groupage network across the continent.

Headquartered in Istanbul, Raben Türkiye will offer comprehensive international transport solutions (road, sea, and air), customs services, and warehousing through a 2,000 m² cross-dock facility with a capacity of 1,500 pallets.

The Turkish branch will operate key routes to Poland, Germany, Czechia, Italy, Romania, and the Netherlands—markets where Raben already has a strong presence.

Several factors motivated Raben’s decision to enter Türkiye: its modern infrastructure, the presence of a customs union with the European Union, and a dynamic economy. In fact, the country has posted steady growth (+5.4% over the past twenty years), ranking as the 17th largest economy globally and the 7th in Europe. As a strategic logistics hub connecting Europe, Central Asia, the Middle East, and China, Türkiye's young and fast-growing population represents a major growth driver for transport and logistics companies.

By establishing a presence in Türkiye, Raben reaffirms its commitment to delivering high-performance logistics solutions to its European clients and supporting Turkish companies in their international expansion.

Source: Raben Group press release, June 10, 2025

Hitachi Energy invests $70 million

Swiss group Hitachi Energy has announced a $70 million investment to expand its production capacity in Türkiye. This move reflects the company’s commitment to supporting the energy transition and meeting the growing demand for electricity in Türkiye. The investment also aims to strengthen supply chain resilience amid regional geopolitical tensions that are increasing risks related to energy security and accessibility.

The investment will be dedicated to expanding its production facility located in Dilovası, in the Kocaeli province (east of Istanbul). The plant, which specializes in power transformers, will see a 70% increase in capacity through the addition of 45,000 m² of operational space. The project also involves relocating operations from the Kartal (Istanbul) facility to the Dilovası site to optimize logistics thanks to its proximity to the commercial port. Completion is expected by 2026.

This expansion will also lead to a 30% increase in local employment. As of today, Hitachi Energy already employs over 1,100 people in Türkiye.

According to Yasemin Hoşder Öztekin, Managing Director of Hitachi Energy Türkiye: "This investment reflects our commitment to supporting the decarbonization of our customers and actively contributing to the transformation of the energy sector."

With four factories in the country, Hitachi Energy reaffirms its local presence and ambition to make Türkiye a leading industrial hub.

Source: DailySabah, June 19, 2025

Tchibo invests €50 million

German group Tchibo, present in Türkiye for 20 years, has announced a strategic investment of €50 million over five years. This ambitious plan aims to expand its network to 100 stores by 2028 (up from 60 today), diversify its distribution channels, and for the first time, test a franchise model in this rapidly growing market.

Türkiye is currently Tchibo’s fastest-growing market globally, second only to Germany, its home country. This strong momentum is driven by the spectacular growth of the coffee market, which reached TL 27 billion in retail sales value last year. For the first time, coffee consumption has caught up with tea in the country and is expected to surpass it by 2025.

Instant coffee and blends account for 60% of the Turkish market, followed by traditional Turkish coffee at 30%. But all eyes are on filter, bean, and capsule coffee, a booming segment (10% of the market) that is seeing triple-digit growth—and where Tchibo Türkiye is already the market leader, with ambitions to further strengthen its position.

Historically focused on coffee, Tchibo also offers a non-food product range, which accounts for 15% of its turnover. Founded in Hamburg in 1949 as a mail-order coffee service, Tchibo opened its first store in 1955 and has since expanded into 13 countries with around 1,000 retail outlets. In Türkiye, where the brand has been present since 2005, it now operates 60 stores in 13 cities. This strategy reaffirms Tchibo’s ambitions to establish itself as a key player in Türkiye’s rapidly evolving coffee market.

Source: Ekonomim, May 28, 2025

EarlyHealth Group acquires Turkish company Corena

EarlyHealth Group, a global player in pharmaceutical services, has announced the acquisition of Corena – Part of EarlyHealth Group, a leading pharmaceutical distributor in Türkiye. This strategic move strengthens EarlyHealth Group’s position among the key life sciences players in Türkiye.

The acquisition aligns with the Emirati group's ambition to accelerate a $100 million initiative program aimed at internationalizing Türkiye’s pharmaceutical sector. By combining Corena’s local expertise with EarlyHealth’s global reach, the group aims to support exports, enhance collaboration between academia and industry, and promote Türkiye as a major hub for clinical research and pharmaceutical innovation. With over 20 years of experience, Corena will serve as a key operational and scientific center to lead these initiatives at the national level.

EarlyHealth Group supports life sciences companies by helping them conduct clinical trials for new drugs and facilitating their entry into global markets, managing regulatory and commercial processes. Corena Ecza Deposu, on the other hand, is a major player in the Turkish market, distributing pharmaceutical products across an extensive national network.

The official signing, held in Dubai in the presence of Turkish and Emirati diplomatic and political figures, highlights the strategic partnership between Türkiye and the United Arab Emirates, as well as their shared commitment to innovation in healthcare and sustainable growth.

Source: Globenewswire, June 17, 2025

Licensing agreement between Mothercare and Turkish retailer Ebebek

British brand Mothercare is continuing its international expansion strategy by signing a 10-year exclusive licensing agreement with Ebebek, the leading Turkish retailer of mother and baby products. This partnership grants Ebebek exclusive rights to operate the Mothercare brand in Türkiye for products designed or sourced by either Ebebek or Mothercare. The agreement will also allow Mothercare to rebrand certain Ebebek products for distribution outside of Ebebek’s existing markets.

With 280 stores across Türkiye and a high-performing e-commerce business generating annual revenues of over $536 million, Ebebek is a major player in the sector. The company has been listed on the Istanbul Stock Exchange since 2023.

This strategic partnership follows a similar deal signed with Reliance Brands for the South Asia region, demonstrating the global appeal of the Mothercare brand and its commitment to partnering with leading local players to accelerate its growth.

Clive Whiley, Chairman of Mothercare, stated: "This agreement reaffirms the value and international reach of our brand. We are delighted to partner with Ebebek to make Mothercare a key part of their offering in Türkiye."

With the market for mother, baby, and child products in Türkiye growing at an average annual rate of 10%, this partnership also reflects Mothercare’s ambition to capture the strong potential of the Turkish childcare market and to grow alongside trusted local partners in this rapidly expanding region.

Source: Fibre 2 Fashion, June 23, 2025

Frasle Mobility strengthens its distribution network

Brazilian-origin company Frasle Mobility, a global provider of sustainable mobility solutions, has announced a strategic partnership with Beser Balatacılık, one of the leading automotive parts distributors in Türkiye. This new agreement aims to enhance the distribution of FRAS-LE branded products for commercial vehicles, leveraging Beser’s local expertise and extensive commercial network.

Why is this partnership strategic?

• Türkiye is a key market for Frasle Mobility due to its central role in regional supply chains and the ongoing growth of the industrial vehicle sector.

• Beser, known for its strong logistics coverage and market experience in Türkiye, will play a crucial role in promoting FRAS-LE braking solutions to industry professionals.

• FRAS-LE products are already adopted by major heavy-duty vehicle manufacturers in Brazil, the United States, and China, and are renowned for their performance, reliability, and advanced friction material technology.

With a global presence in over 125 countries, 12 manufacturing sites, and a strong commitment to innovation, Frasle Mobility confirms its ambition to support mobility professionals with sustainable, high-performance solutions tailored to local markets.

Source: The Brake Report, June 12, 2025