Türkiye’s Sectors in 2025: Growth and Contraction Analysis

Overview of Key Findings

In 2025, Türkiye’s economy exhibited a distinct deepening of sectoral divergence. While construction, real estate, and information-communication achieved striking growth, agriculture and manufacturing suffered considerable contractions. Tight financial conditions placed particular pressure on labor-intensive and export-oriented industries. More information on Türkiye’s economy can be found in the official data of the Turkish Statistical Institute (TÜİK) and Istanbul Chamber of Industry (İSO).

Expanding Sectors

Construction and Real Estate (Leading Performance)

The construction sector stood out as the fastest-growing area of Türkiye’s economy in 2025. It recorded 13.9% growth in the third quarter and maintained 10.9% in the second quarter. Construction investments rose by 11.6% in the second quarter, marking a solid expansion trend.

Real estate activity, measured by employment, showed even stronger momentum: by December 2025, employment grew by 11.9% year-on-year. The sector benefited directly from increased demand driven by low-interest housing loans and a rise in property investments.

Services (Broad-Based Expansion)

The services sector (excluding construction) maintained stable growth, reporting 7.1% growth in the third quarter and 5.2% in the second. Within the broader services ecosystem:

• information and communication: growth of 10.1% (Q3) and 7.1% (Q2)
• trade and accommodation: 5.6% growth (Q2); hospitality employment up 5.4%
• transport and storage: employment increase of 3.7%

Industrial Sector (Moderate Growth)

Industry expanded 6.1% in Q2 and 6.5% in Q3. Despite these headline figures, structural disparities persisted within sub-industries. The İSO Türkiye Manufacturing PMI index remained below the 50-point threshold for most of the year, indicating contraction in manufacturing activity.

Automotive Trade (Niche Growth)

The trade and repair of motor vehicles recorded 5.2% employment growth, underscoring resilience amid challenging domestic conditions.

Sectors Facing Contraction

Agriculture (Critical Decline)

Agriculture was the most severely hit sector of 2025. The sector contracted by 12.7% in Q3 and 3.5% in Q2, while total agricultural production dropped 12.2%. Key declines included:

• fruit production: -30.9%
• grain production: -9%
• vegetable production: -0.9%

Major causes included drought, frost, excessive rainfall, hailstorms, and water scarcity. These conditions also shrank the tractor market by 36%, falling to 40,498 units.

Manufacturing (Structural Contraction)

Manufacturing employment fell by 3.9% year-on-year. PMI data reinforced the downturn, reaching the year’s low at 45.9 in July and rebounding modestly to 48 in November. Labor-intensive sectors—especially textiles, ready-to-wear, and footwear—experienced the steepest declines, pressured by both global demand fluctuations and financing constraints.

Mining and Quarrying

The mining industry witnessed a modest contraction, with employment decreasing by 0.8%.

Economic Stress Indicators

Türkiye’s financial landscape in 2025 revealed rising stress. Within the first 11 months, 2,535 companies declared concordat (insolvency protection)—a sharp jump from 1,723 in 2024 and 519 in 2023. The ratio of closed joint-stock companies to new openings rose to 39.8%.

Tight financing conditions and waning demand particularly hit small and medium-sized manufacturing firms, reducing liquidity and production capacity.

Export Dynamics and External Demand

Despite weak domestic demand, external demand remained supportive. The İSO Türkiye Manufacturing Export Climate Index stayed above the 50-mark throughout 2025, signaling improvement in export opportunities. As of November 2025, Türkiye’s 12-month cumulative goods exports reached a record 270.6 billion USD, showing the economy’s continued capacity to generate foreign currency inflows.

Strategic Implications for International Entrepreneurs

Conclusion

The data for 2025 reveals a clear pattern: Türkiye’s sectoral divergence deepened as services and construction became the primary growth engines, while manufacturing and agriculture encountered structural challenges.

For international investors, these developments highlight the importance of adopting a selective, sector-focused, and regionally differentiated strategy when evaluating opportunities in Türkiye’s evolving economic landscape. Entrepreneurs may explore official investment guidance through the Investment Office of the Presidency of Türkiye for more insights.