Istanbul, Jan. 6 (Reuters) – Turkey’s industrial production index is expected to contract year-on-year for the first time since 2020 in November, according to a Reuters poll.
Industrial activity recovered strongly after the first coronavirus wave in April 2020 and has expanded for more than two years in a row since then. However, the annual growth rate has slowed significantly since the summer, and the global economic slowdown has dampened demand.
An estimated median of six Reuters polls showed a year-on-year contraction of 0.95% in the calendar-adjusted industrial production index Trip = ECI in November.
Three economists expected the index, considered a preliminary measure of growth, to rise by up to 1%, while the other three expected it to contract by up to 2.8%.
President Tayyip Erdogan’s economic program prioritizes growth, exports, investment and employment while lowering interest rates.
The central bank cut its policy rate by 500 basis points last year, to 9% after President Erdogan called for single-digit rates by the end of the year. The bank justified the cuts, saying fiscal conditions needed to be supportive to sustain growth in industrial production.
The index rose 0.5% in September and 2.5% in October, showing the impact of lower demand due to the slowing global economy.
The Turkish Statistics Office will release figures for November industrial production on 10 January at 0700 GMT.
(Reporting by Ezgi Erkoyun; Editing by Daren Butler)
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https://www.nasdaq.com/articles/poll-turkish-factory-activity-shrinks-for-first-time-since-2020 POLL-Turkey factory activity reduced for first time since 2020