REGIONAL REPORT medium-term growth. They also emphasised the role of measures to broaden the tax base and improve compliance, together with further efforts to streamline expenditures through phasing out energy subsidies. They called for
The MAKTEK Eurasia exhibition. carefully sequenced and well communicated measures to minimize second-round inflationary impacts while mitigating the impact on vulnerable households. As fiscal space expands, additional resources could be redirected to social priorities. Directors also supported full alignment of wage policies with inflation targets, as well as stronger oversight of PPPs and SOEs.
Directors generally called for tighter monetary policy to achieve decisive disinflation, while emphasizing the need for policy rate adjustments to remain data-dependent and mindful of their macro-financial implications. They also urged structural reforms to foster productivity, resilience and medium-term growth. Top priorities include improvements in labour, education and governance and legal frameworks, support for SMEs and raising the share of renewables in the energy mix.
Foundations for growth and competitiveness
According to the OECD’ s‘ Foundations for Growth and Competitiveness 2026’ report, Türkiye has scope for faster economic convergence with most advanced economies. Fixed investment is skewed towards housing, although the contribution of productivity-enhancing assets has grown over recent years. The working-age population continues to increase but the demographic dividend is set to decline, and female labour force participation is low. Productivity has increased relatively quickly in recent years, but from low levels.
“ Reducing barriers to job creation and enhancing incentives to work would facilitate women’ s participation in the labour market and would help sustain economic growth more generally. Türkiye should also better match the skills of new labour market entrants to employer needs and promote upskilling throughout working lives. Easing regulatory barriers for businesses and ensuring a level-playing field between state-owned and private enterprise would boost productivity and improve resource allocation,” recommended the OECD.
Türkiye has made notable strides in early childhood education and care( ECEC) services, with enrolment rates rising significantly in recent years. The number of tertiary-educated graduates is increasing steadily, and efforts are currently underway to address skills mismatches with updated programmes and emphasis on vocational training.
“ Türkiye has also relaxed immigration rules for foreign skilled workers and is encouraging the return of skilled Turkish emigrants. As regards business regulation, progress in recent years has included a reduction in the number of bodies to be contacted to establish a Limited Liability Corporation and regular updates to the simplified
Image: Shutterstock. com.
Investment Procedures Guide to improve communication of procedural requirements,” added the OECD.
Industrial machinery and production technologies
Türkiye ranks an estimated fourth place in Europe for machinery exports and is a powerhouse of industrial machinery and related technology production. Türkiye demonstrated a strong presence at EMO Hanover 2025: more than 40 Turkish companies showcased their products and technologies at the trade show. Türkiye’ s manufacturers have, however, been buffeted by disruption linked to the Gulf conflict( including supply chain delays), surging costs for fuel, metals and transportation, as well as deeper structural challenges.
The country holds several well-known machine tool and industrial machinery exhibitions. These include Metalexpo 2026( 16-18 September 2026) in Istanbul, Turkey, with its slogan‘ Smart Steel, Smarter Future’ highlighting digitalisation, automation and AI-driven production processes. The ninth edition of the International MAKTEK Eurasia Exhibition will take place from 28 September – 3 October 2026, at the Tüyap Fair Convention and Congress Centre. It has received formal recognition as a“ Prestigious Fair” by the Ministry of Trade of the Republic of Türkiye. It covers machine tools and related production technologies.
At the MEEXX – Machinery and Industrial Production Technologies Exhibition in Bursa from 3 – 6 December 2025, BTSO( Bursa Chamber of Commerce and Industry) Chairman, İbrahim Burkay, reportedly stated that the machinery sector is one of the most strategic areas for Türkiye’ s technological and economic independence. Türkiye, he reportedly said, has become strong in machinery manufacturing, with 57,000 entrepreneurs and exports exceeding 28 billion dollars.
Providing an overview of the sector with key figures, Machine Manufacturers Association( MİB) Chairman, Fatih İğrek, stated that annual machinery production exceeds 60 billion dollars, machinery exports reached 28 billion dollars in 2024 and the industry has grown approximately 14-fold compared to 2002. He noted that Türkiye ranks 13th globally and fourth in Europe in machinery exports, with a local production rate hovering at around 70 % and an export unit price of 6.2 dollars— nearly three times Türkiye’ s national average. Direct and indirect employment in the industry has reached 550,000 people.
İğrek highlighted recent global challenges such as shrinking demand, an economic slowdown in Europe, aggressive price competition from China and South Asia, rising energy and labour costs, and financing pressures. Emphasizing that the era of competing solely on price is over, he listed Türkiye’ s strategic differentiators as advanced engineering, smart and user-centred design, high efficiency and automation, advanced software and process technologies, quality and rapid adaptation capabilities. He stated that the industry’ s goal is“ not to produce cheaper, but to produce smarter and more efficiently.”
Touching on digital transformation and R & D, İğrek stressed that digital twins, robotic automation, industrial AI, sensor-based monitoring and predictive maintenance systems have become fundamental standards for modern industry, rather than luxuries. He underlined that all manufacturing structures— including SMEs— must be part of this transformation. Stressing the need for a paradigm shift in R & D, İğrek explained that Türkiye’ s competitiveness depends upon technical education reinforced with science, engineering and modern curricula; university – industry collaboration; and applied training models.
MEEXX, the Exhibition for Sheet Metal Processing Machines, Metalworking Machine Tools and Automation Technologies, will be held at the Bursa Exhibition Centre between 25 – 28 November 2026. n
ISMR June 2026 | ismr. net | 35