In the first half of the year, 18 thousand companies closed

In the first half of the year, 18 thousand companies closed
21 July 2020

The novel coronavirus pandemic, which affected the world and brought economic fluctuations, left companies in financial difficulties. While 18 thousand 140 companies were closed in the first 6 months of 2020, the highest increase was observed in the mining and quarrying sector compared to the same period of the previous year.

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ISTANBUL (TR) - According to data from the Turkish Union of Chambers and Commodity Exchanges (TOBB), the number of companies closing in the first half of 2020 increased by 12 percent compared to the same period last year. Mining with 79% was the sector with the largest increase in the number of companies closed compared to last year, while real estate businesses with 66% were in second place and transportation and storage companies with 40% were in third place. In the first 6 months, 6,905 wholesale and retail trade companies closed, making up more than 30% of the total closed companies. The closure of companies has had a domino effect, especially in sectors with broad stakeholders, such as construction.

“2 thousand 957 construction companies closed”

Stating that each closed company has a negative impact on its stakeholders in different sectors, Economic Policy Specialist Dr. Aziz Murat Hatipağaoğlu said, “There was a serious economic contraction in the construction industry from the first time we encountered the coronavirus pandemic in March to the normalization in June. The closed construction companies directly affected the mining, quarries and real estate sectors. This was more clearly seen in financially weaker individual companies. While only 2 thousand 957 construction companies were closed in the first month of 2020, 1,934 of them were individual construction companies that could be classified as contractors. Accordingly, many suppliers have come to a standstill. I think that all these problems experienced in the first half of 2020 can be closed with the state supports in the second half of 2020.”

“2020 is a test for companies”

Stating that the companies that have succeeded in this difficult period have great potential for the period ahead, Dr. Aziz Murat Hatipağaoğlu said, “The increasing demands and the decrease in the number of companies that will meet these demands can accelerate the companies' entry into the new period. Apart from this, with the coronavirus pandemic, the closure of many countries in our nearby geography by closing the borders brings new business opportunities. One of the greatest teachings of this period was the development of our companies' business processes for export.”

Contact: Tülay Genç | [email protected] | +90 (850) 885 12 55