Turkey's industrial output continues decline, down 23.7 percent in Feb

Hurriyet Daily News with wires

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According to data released by Turkish Statistics Institute (TURKSTAT), production in the mining industry dropped by 16.8 percent, while the manufacturing industry shrank 25.9 percent. Turkey's power, gas and water industry also fell by 9.7 percent, the figures also revealed.

This is the seventh consecutive month of decline due to weak domestic demand and a reduction in exports.

The market had expected a fall of around 20-21 percent. 

In January, production had fallen by 21.3 percent, sending the lira to its weakest-ever level in March, when the data was released, and prompting the central bank to support the currency.

The data reinforced analysts' expectations the economy will fall into recession this year and that unemployment was set to continue rising.

Analysts say the figures underline the need for urgent agreement on a loan deal with the International Monetary Fund to shore up the ailing economy. The latest figures also supported expectations of further central bank interest rate cuts.

After the release of the latest data, the lira currency stood at 1.6160 against the dollar, weakening from a close of 1.6085 on Tuesday. The Turkish currency rebounded last month from a record low of 1.82 recorded in March after the release of the latest industrial data for that period.