Turkey Industry December 2018

Turkey

Turkey: Industrial production contracts sharply in December

February 14, 2019

Industrial output dropped 9.8% in December in calendar-adjusted year-on-year terms, a near-decade low and down from November’s revised 6.6% contraction (previously reported: -6.5% year-on-year). The marked downturn came on the back of decreased output in manufacturing; mining and quarrying; and electricity, gas, steam and air conditioning supply, in descending order of magnitude.

On a seasonally- and calendar-adjusted basis, industrial production fell 1.4% in December over the prior month, down from November’s 0.3% contraction. Annual average growth in industrial production eased to 2.4% in December from 4.3% in November.

Industrial production is likely to remain weak in the months ahead due to subdued domestic demand, tight financial conditions and elevated inflation putting pressure on firms’ margins. However, industrial production should gradually improve later this year, as the economy recovers and interest rates decline. FocusEconomics Consensus Forecast panelists expect industrial production to rise 0.7% in 2019 and 3.3% in 2020.


Author:, Economist

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Turkey Industry December 2018 0

Note: Year-on-year and annual average variation of industrial production index in %.
Source: Turkish Statistical Institute (TurkStat) and FocusEconomics calculations.


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