MOSFED Güleç: Industrial Costs Threaten External Balance

Ahmet Güleç, Vice President of the Turkish Exporters' Assembly (TİM) and President of the Federation of Furniture Associations (MOSFED), warned that rising production costs in the furniture sector are undermining the external balance, particularly ahead of 2026. Güleç highlighted that these cost increases are eroding foreign exchange gains and weakening export competitiveness.

Industrial Costs' Impact on External Balance

■Rising production costs are threatening the export competitive edge in the furniture sector.

■Strong foreign exchange gains are being replaced by weaker returns.

■Strategic planning is needed for the sectoral roadmap by the first half of 2026.

■Macroeconomic uncertainty is intensifying due to fluctuations in energy and raw material prices.

Sectoral Expectations Until 2026

■Exporters have initiated a process to develop new models for cost control.

■Increasing production efficiency to balance the foreign trade deficit was emphasized.

■Investment in innovative production technologies is critical to maintain competitiveness globally.

■Cost increases are not limited to furniture but have potential spillover effects on other industrial sectors.

Markets indicate that cost pressures in industrial sectors directly impact both banking credit flows and payment system liquidity. The decline in foreign exchange earnings could reduce banks' capital adequacy ratios (CAR), while digital payment solutions offer pathways to optimize costs. MOSFED's signals may create new opportunities for bank and fintech integrations.