Chamber of Industry: Industry’s share of Northern Cyprus’s economy has fallen sharply

The Turkish Cypriot Chamber of Industry (KTSO) stated that the share of the industrial sector in Northern Cyprus’s gross domestic product fell from 9.7% in 2020 to 6.7% in 2024, a decrease of almost 45%. According to the organisation, the decline is continuing in 2026.

The chamber noted that the industry is going through one of its most difficult periods in recent years. Manufacturers are facing high costs for electricity, labour, raw materials, transportation, taxes and imported equipment. As a result, many businesses are reducing production, postponing investments or laying off employees.

The KTSO stressed that local manufacturers are forced to compete with imported products that receive substantial government support in their countries of origin.

The Chamber of Industry called on the authorities to make the development of manufacturing one of the priorities of economic policy, reduce electricity costs for businesses, expand targeted support measures, simplify access to financing and create mechanisms to protect local manufacturers from unfair competition.