Turkiye’s medical device sector hit by lira weakness, inflation

Growth in local currency will be supported by higher investments in medical tourism.

Turkiye’s medical device market is expected to contract at a compound annual growth rate (CAGR) of 8.7% through 2029 in US dollar terms, according to a BMI report.

The forecast reflects the impact of inflation and continued lira depreciation, with the exchange rate expected to weaken from TRY35.3 per USD in 2024 to TRY45.0 per USD by the end of the year.

“The central bank’s commitment to tighter monetary policy has helped stabilise the currency following major outflows earlier in the year,” the report said.

“But reserves remain fragile and policy orthodoxy is not guaranteed if economic headwinds intensify,” it added.

Meanwhile, sector growth in local currency will be supported by higher health budgets and investment in medical tourism, particularly in dental products and hospital equipment.

In Turkish lira terms, the market is projected to expand at a CAGR of 7.6% during the period.