The construction sector has a driving role in the Turkish economy. The industry accounts for 5.4% of the total GDP and employed 1.5 million persons in 2020. When the sector's direct and indirect impacts on related industries are considered, the share of the sector in the overall economy reaches 30%. The construction sector, however, has been caught by the pandemic in already very fragile conditions (FIEC, 2021)
The pandemic made some projects slow down rapidly and resulted in the suspension of others. Debt ratios in the sector have increased. In addition, the rising interest rates and the volatile exchange rate increased financing costs. The cost of material/equipment and labour increased and the sector experienced a contraction of 3.5% in 2020 (FIEC, 2021)
