TOBB releases data: Companies are going bankrupt in Turkey

As the depreciation of the Turkish Lira due to inflation and the currency crisis pushes markets into a deadlock, there has been a significant increase in the number of companies closing down in Turkey.

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TOBB releases data: Companies are going bankrupt in Turkey

While inflation and the currency crisis lead to negative returns for the Turkish Lira, markets have entered a deadlock.

Following these developments, according to the statistics on newly established and closed companies for July released by the Union of Chambers and Commodity Exchanges of Turkey (TOBB), the number of companies that closed in the last year increased by 39.8 percent. In the same period, the number of newly established companies showed an increase of 4.2 percent.

NUMBER OF NEWLY ESTABLISHED COMPANIES DECREASED IN THE FIRST 7 MONTHS

In the first 7 months of 2024, compared to the first 7 months of 2023, the number of newly established companies decreased by 14.5 percent, the number of newly established sole proprietorships decreased by 31.3 percent, and the number of newly established cooperatives decreased by 8.2 percent.

In the same period, while the number of closed companies increased by 28.3 percent and the number of closed cooperatives increased by 9.1 percent, a decrease of 36.8 percent was observed in the number of closed sole proprietorships.

NO COMPANIES WERE ESTABLISHED IN BAYBURT AND ARDAHAN

Of the total 9,980 companies and cooperatives established in July 2024, 86.2 percent were limited liability companies, 11.1 percent were joint-stock companies, and 2.7 percent were cooperatives. 35.8 percent of the companies and cooperatives were established in Istanbul, 10.9 percent in Ankara, and 5.9 percent in Izmir. No company establishments took place in Bayburt and Ardahan this month.

News Source: 12punto