The TUSIAD Cost-Based Competitiveness Index (TUSIAD-CCI) rose by 3.0% in the second quarter of 2025 and reached 88.7. During this time, competitor countries that experienced significant currency appreciations against the US dollar faced notable increases in dollar-based costs, while domestic cost trends in Türkiye remained comparatively moderate. Excluding energy, the rise in other domestic cost components remained below those observed in competitor countries.
Although the TUSIAD-CCI pointed to a modest improvement in the second quarter of the year, the cost-based competitiveness of exporting sectors remained weak with the index hovering below its 2015 level.
Over the past year, the decline in the TUSIAD-CCI was primarily driven by rising labor and financing costs relative to those in competitor countries. Although the index edged up in the second quarter, the contribution of energy costs to this improvement remained limited. At the same time, higher growth in intermediate goods costs abroad compared to domestic markets provided exporting companies with a modest cost advantage.
In light of these developments, the TUSIAD-CCI declined by 1.4 percent year-on-year in the second quarter of 2025, marking an improvement relative to the sharper contraction observed in the previous quarter. The 1.4 percent year-on-year decline was primarily driven by labor costs with a negative contribution of 1.5 percentage points, and financing costs with a negative contribution of 0.3 percentage points. In contrast, intermediate goods and energy costs made positive contributions to the index, adding 0.2 and 0.1 percentage points, respectively.
For the full report and more information on “The TUSIAD Cost-Based Competitiveness Index (TUSIAD-CCI)”, please visit: https://tusiad.org/en/reports/competitiveness-index