May 17 2019

Number of Turkish companies shut down increased by 13 percent in April

Turkey's largest business group on Friday announced that the number companies shut down surged by 13 percent in April with respect to the previous month as the country is dealing with a severe economic crisis.

The Union of Chambers and Commodity Exchanges of Turkey (TOBB) said in its latest report that 726 Turkish companies went out of business in April.

During the first four months of 2019, the number of companies shut down slumped by 5 percent compared to the same period last year, a Friday report by TOBB said.

More than 3,000 Turkish firms reportedly applied for bankruptcy protection in 2018 due to a currency crisis that reached its peak in August as a result of a diplomatic spat between Washington and Ankara.

The Turkish lira slumped about 28 percent against the dollar last year, and a further 13 percent since the beginning of 2019.

Efforts to establish new companies run short to race with the bankruptcy statistics, as the newly established companies shrank by 5 percent in April compared to March, according to TOBB.

While economists say Turkey has technically entered into a recession, the worst part of the economic downturn is over, according to the Turkish government.