May 2026

May 2026 opens in a mixed economic environment. The latest data published by the Turkish Statistical Institute (TÜİK) indeed shows a temporary rebound in prices in April. Annual inflation rose to 32.4%, compared to 30.9% in March, bringing an end—at least temporarily—to the disinflation trend observed since autumn 2025. On a monthly basis, prices increased by 4.2% in April, compared to 1.9% in March.

This acceleration is mainly driven by rising energy costs. Prices for water, electricity, gas, and fuels increased by nearly 8% over the month. This sensitivity to energy-related costs is a key issue for Türkiye, which imports around 75% of its energy needs. Disruptions around energy flows in the Strait of Hormuz are mechanically contributing to this imported price pressure.

In response to these developments, the Central Bank of the Republic of Türkiye has revised its inflation forecasts for 2026 upwards, raising them from 16% to 24%.

Beyond economic indicators, Türkiye continues to strengthen its position on the international stage. The visit to Türkiye by Her Majesty Queen Mathilde of Belgium, within the framework of the Belgian Economic Mission to Türkiye, brought together 428 participants, 194 companies, 17 federations and chambers of commerce, 8 academic institutions, as well as several representatives of Belgian federal and regional authorities. Nearly 14 years after the previous Belgian mission of this scale, this visit reflects a desire to strengthen relations between Türkiye and Belgium, and more broadly the growing interest in bilateral cooperation between European and Turkish industrial players.



In the same momentum, the Turkish authorities have recently announced new fiscal measures aimed at enhancing the country’s attractiveness, encouraging the establishment of foreign companies and attracting more international talent. Among the highlighted measures are a reduction in the corporate tax rate for exporting manufacturing companies to 9% (from the current 25%), the complete abolition of the transit trade tax, as well as tax exemptions ranging from 95% to 100% for regional headquarters established in Türkiye.

Economic & business news from Türkiye

La Lorraine strengthens its footprint in Türkiye

La Lorraine Türkiye is reaching a new milestone in its development with the inauguration of a new artisanal bread production line at its Manisa site. This strategic investment marks 10 years of the group’s presence in Türkiye. According to Vice President Türkiye & Middle East, Neslihan Nigiz Ulak: “With this new artisanal line, we are increasing our capacity to offer more artisanal, innovative and high-quality products tailored to the expectations of local consumers.”

Present in Türkiye since 2016, La Lorraine launched its operations with a fully automated bread line in Manisa. Over the past 10 years, the group has invested more than EUR 100 million in the country and developed several segments: artisanal breads, viennoiseries, and savoury products.

Today, La Lorraine Türkiye:

• operates 5 production lines
• employs approximately 750 people through its network and distributors
• has more than 20 regional sales offices
• and has established itself as a strategic hub for Türkiye and the Middle East

The group’s CEO, Guido Vanherpe, also highlights Türkiye’s central role in the company’s international strategy: “Türkiye and subsequently the Middle East have become a key gateway in our eastward expansion strategy.”

This new line in Manisa confirms the group’s long-term confidence in Türkiye as a strategic growth engine.

Source: Capital, 13 May 2026

Honda inaugurates a new motorcycle plant in İzmir

Honda continues to strengthen its industrial presence in Türkiye with the official inauguration of its new motorcycle production plant in Aliağa, İzmir. Operated by Honda Türkiye A.Ş., this strategic facility becomes the group’s 38th motorcycle manufacturing plant worldwide and highlights the growing importance of the Turkish market in Honda’s global strategy.

This decision comes amid strong growth in Türkiye’s mobility market, driven by:

• increasing demand for individual transportation
• the expansion of delivery services
• the dynamism of the two-wheeler market

In this context, Honda maintained its position as market leader in Türkiye in 2025 for the 11th consecutive year, confirming the relevance of its local development strategy.

Production began last April. The initial annual production capacity is set at 100,000 units, with the potential to expand to 200,000 units. The facility covers a total area of 100,000 m², including 45,000 m² of covered space, and is expected to generate approximately 300 direct jobs.

As highlighted by Hans De Jaeger, President of Honda Motor Europe, this new plant reflects Honda’s confidence in the Turkish market and its ambition to contribute sustainably to employment, industrial development, and the country’s growth.

This marks another example of Türkiye’s positioning as a strategic industrial hub for international players in the automotive, mobility, and manufacturing sectors.

Source: Honda press release, 05 May 2026

UK-based Colt opens a second PoP in Istanbul

Colt Technology Services, a UK-based global provider of digital infrastructure, has announced the expansion of its network in Türkiye with the addition of a second Point of Presence (PoP) in Istanbul. Colt’s high-performance infrastructure is now connected to two established data centers in the city—one on the Asian side of Istanbul and the other on the European side—providing businesses with high-capacity services designed for AI-driven workloads.

The objective is to support the rapid growth of demand related to:

• artificial intelligence (AI workloads)
• cloud and data-intensive applications
• increasing needs for secure, low-latency connectivity
• large-scale digital transformation projects

Through this expansion, Colt strengthens the resilience of its network and offers high-capacity connections of up to 100 Gbps for enterprises, carriers, hyperscalers, and neoscalers operating in the region.

According to Joe Scattareggia, Executive Vice President at Colt, “Demand for high-capacity, low-latency infrastructure in Türkiye and surrounding regions is growing rapidly, driven notably by AI workloads, cloud adoption, and digital transformation.”

This expansion further confirms Türkiye’s growing role in global digital infrastructure and in the AI-driven economy.

Source: Colt press release, 18 May 2026

IMCD opens a new technical centre in Türkiye

Dutch company IMCD Group is taking a new step in Türkiye with the opening of a Technical Centre in Istanbul (Ataşehir), designed to accelerate the development of specialty chemicals and ingredient solutions. The centre now brings together on a single site the following areas of expertise:

• Food & Nutrition
• Beauty & Personal Care
• Coatings & Construction
• Pharmaceuticals

The laboratory will support the development of formulations (solid, liquid, and semi-solid) and will rely on international standards, including Quality by Design (QbD), to ensure project reliability and robustness.

Its scope will extend beyond the Turkish market to also cover the Middle East, the Maghreb, Egypt, and Sub-Saharan Africa.

The centre will focus on an integrated approach to innovation:

• co-creation with brands (Beauty Studio)
• product formulation and optimisation
• pilot testing and prototyping
• early-stage consideration of performance, texture, and industrial scalability

With more than 80 technical centres worldwide, IMCD is reinforcing its strategy of bringing formulation science closer to market needs.

Source: IMCD press release, 04 May 2026

Franklin Electric inaugurates a new plant in İzmir

US-based Franklin Electric continues to expand its presence in Türkiye with the inauguration of a new production facility in Torbalı (İzmir). The investment amounts to EUR 5 million, and the plant covers an area of 14,600 m². Its objective is to strengthen production capacity, regional logistics, and the group’s EMEA operations.

This opening marks a new stage in the industrial integration of the Turkish company İmpo Motor within Franklin Electric. After entering İMPO’s capital in 2011 and becoming sole shareholder in 2018, Franklin Electric has progressively positioned Türkiye as a strategic link in its regional industrial organisation.

Today, the group’s operations in Türkiye represent:

• 2 industrial sites in Torbalı
• 400 employees
• exports to more than 50 countries

The new facility will increase production capacity for submersible pumps and motors, while integrating advanced industrial technologies and a sustainability-focused approach.

Founded in the United States in 1944, Franklin Electric is a global leader in pumping systems, submersible motors, and water and energy management solutions. The group reported revenue of USD 2.13 billion in 2025.

This project further confirms Türkiye’s growing position as a regional industrial hub for hydraulic equipment and water-related technologies.

Source: Air News Turkey, 20 April 2026

Rare earths and critical minerals: Türkiye aims for the global top 5 with a USD 600 million project

Türkiye is taking a major step forward in its strategy on critical minerals with the development of the Beylikova rare earth project located in Eskişehir, supported by a massive USD 600 million investment. The government’s stated objective is to rank among the world’s top five producers of rare earth elements.

Potentially the second-largest global reserve after China

China still controls more than 80% of global refining capacity, and exports of certain critical elements (yttrium, dysprosium, terbium) are subject to restrictions and trade tensions. As a result, countries are seeking to diversify their supply sources to secure strategic sectors such as defence, semiconductors, and the energy transition.

This project, based on a globally significant resource estimated at approximately 694 million tonnes of rare earths, could position the site as the second-largest reserve in the world after China. These minerals, which play a key strategic role across energy, defence, and advanced technologies, could significantly enhance Türkiye’s geopolitical and industrial importance.

• Construction of 3 industrial facilities | Creation of approximately 1,500 jobs

Türkiye is already a major global player in boron, with around 75% of global reserves located in the country, and it holds approximately 70 types of commercially exploitable minerals.

The Beylikova project could therefore become a landmark initiative repositioning Türkiye on the global map of rare earths and strategic technologies.

Source: Kültür Medeniyet Vakfı, 2026