The number of companies that went bust in recession-hit Turkey increased 49 percent year-on-year and 20.94 percent compared to last month.
A report by the Union of Chambers and Commodity Exchanges (TOBB) painted a bleak picture of the country’s economy revealing that newly launched companies decreased by 0.34 percent to 6670 and the number of sole proprietorships decreased by 1.97 percent to 878.
Turkey’s economy fell into its first recession in a decade at the end of last year, and the Turkish lira lost more than 40 percent of its value.
Turkey’s tension with the US government over the Russian S-400 missile deal and the Supreme Board of Election’s decision to rerun decision of the Istanbul municipal election worsened the economic situation in the country.
TOBB’s newly released data also shows that the number of cooperatives increased by 33.33 percent compared to last month
In April this year, the number of newly launched companies numbered 6 693, while the number of companies that shut down was at a worrying 726.
TOBB’s report said the number of newly launched companies decreased by 18,56 percent compared to May last year.
It also revealed that the number of companies established during the January-May period decreased by 13.14 percent compared to the same period last year at 35 392.
The number of closed companies increased by 1.37 percent during the same period and numbered 4 796.
At least 300 of the companies and cooperatives which declared bankruptcy in May were in the wholesale and retail trade sectors, motor vehicle and motorcycle repair outlets.
Another, 166 of them were in construction, 80 in professional, scientific and the technical activities sectors.
A total of 1055 foreign joint venture companies were established in May as 563 Turkish, 75 Iranian and 67 Syrian citizens invested in the country.