Turkey’s industrial production has hit an eight year high, as it was 2.4% higher in March compared to the same month last year, and according to data from the Turkish Statistics Institute (TurkStat), production has now increased for 28 consecutive months. These figures were better-than-expected as the predicted growth for March was 2.2%, and are the highest seen for industrial production in Turkey during the past eight years.
According to the figures from TurkStat, the production of electricity on gas, and steam and air conditioning supply increased by 7.9%, while the mining sector increased by 4.3%, and the manufacturing sector index increased by 1.6%. These latest figures should make it slightly easier for the government to realise their 4% growth target for the economy this year, but they are having to work hard to minimise the impact from the Eurozone debt crisis, and to help maintain a soft landing for the Turkish economy.
There are still worries that the Turkish economy may be in for a hard landing due to a decline in domestic demand, but government officials are hopeful industrial production will help support year-end growth targets.
During the first quarter of 2011, industrial production was 14% higher than the same period in 2010, but this performance hasn’t been maintained during the first three months of this year, as the combined growth in industrial production compared to the first quarter of 2011 is 2.7%.
Last year Turkey was one of the fastest growing economies in the world. In spite of this Standard & Poor recently downgraded the outlook on Turkey’s sovereign credit rating, and revised the outlook on the major banks from positive to stable, a move which was criticised by many.