Turkish industrial production rising

Turkish economy speeds up in second quarter as industrial production - leading indicator of growth - rises above expectations in April

Photo by: AA
Photo by: AA

Updated Jul 28, 2015

Turkey’s industrial output rose 3.8 percent year-on-year in April, beating expectations of 3.5 percent. According to data from the Turkish Statistics Institute released on Monday, on both a calendar and seasonally adjusted basis, industrial production remained unchanged from the previous month, with the index remaining with a reading of 124.8. 

Durable consumer goods saw the largest increase from the previous month, up 1.9 percent in April. Looking at other sub-sectors of the industrial production, Turkey’s manufacturing index rose by 4.6 percent, while the electricity, gas, steam and air conditioning supply index rose by 2.1 percent annually.

The stronger than anticipated data is the initial sign of an advancement of growth in the second quarter. Although the Turkish Government has been implementing wide ranging structural reforms in order to boost productivity and obtain sustainable growth, high interest rates and gloomy global outlook are exerting downward pressure on the economy. 

While Turkey grew 2.6 percent in the last quarter of 2014, analysts argue that the economy expanded below its potential. The first quarter gross domestic product (GDP) of 2015 will be announced on June 10, Wednesday.

TRTWorld and agencies