Industrial production increased over 13 pct in February

ANKARA

Turkey’s industrial production rose by 13.3 percent on an annual basis in February, gathering pace from the 7.6 percent year-on-year increase recorded in the previous month, data from the Turkish Statistical Institute (TÜİK) have shown.

The February reading was also above the 8.9 percent rise in the country’s industrial output in February 2021.

On a monthly basis, the country’s industrial output grew by 4.4 percent, TÜİK said.

In the key manufacturing sector, the annual increase in production was a strong 14.4 percent, while its output grew more than 5 percent from January.

TÜİK also reported that both intermediate and durable consumer goods production industries saw an 11.9 percent rise in their outputs in February compared to the same month of 2021.

The production increase in the mining and quarrying sector was 6.1 percent on an annual basis, while the country’s energy output grew 6.9 percent in the month from a year earlier.

The capital goods sector boosted its output by 13.3 percent, and the monthly production increase in this sector was a strong 7.6 percent.

Industrial production is an important indicator, showing the state of the economy and providing clues for growth prospects.

The latest survey showed that the headline Manufacturing PMI posted 49.4 in March, down from 50.4 in February and below the 50 no-change mark for the first time in 10 months.

Output and new orders moderated for the fourth and sixth successive months, respectively, in March, according to the survey.

But, while total new orders moderated, new business from abroad continued to rise amid some improvements in international demand, the survey showed.

Earlier this week, the World Bank said in a report that Turkey’s economic growth is expected to moderate to 1.4 percent in 2022 as the impacts of Russia-Ukraine materialize, before returning to 3.2 percent and 4 percent in 2023 and 2024.

Net exports will drive growth in 2022, offsetting the drag from contractions in investment and private consumption, the World Bank said, recalling that Turkey’s economy grew 11 percent in 2021, the fastest among G-20 countries.

Turkey’s export performance has been strong since the start of the year. In January, exports increased more than 17 percent compared to the same month of 2021 to $17.6 billion, and in February, exports grew 25.4 percent on an annual basis to $20 billion.

Earlier this month, the Trade Ministry announced that exports amounted to $22.7 billion in March, rising nearly 20 percent from a year ago.