MAY INDUSTRIAL OUTPUT LEAPS 40.7% AS REBOUND MAINTAINS PACE
TURKEY’S industrial output grew faster than expected on an annual basis to register a double-digit rise in May, official data showed yesterday, driven mainly due to a sharp slowdown in the same month last year caused by the initial lockdown measures.
The calendar-adjusted industrial production index grew 40.7% in May, largely due to the so-called base effect, according to the Turkish Statistical Institute (TurkStat) data. Month-on-month output was up 1.3%.
The index grew by 16.6% in March and 66% in April, according to the data.
Many Turkish factories halted operations last March, soon after the first COVID-19 infection was recorded.
Output had dropped 31.4% in April and 19.9% in May before recovery began in June.
Turkey had imposed new virus-related lockdowns after a strong economic rebound in the second half of 2020, but the measures did not affect production.
An Anadolu Agency (AA) survey last week expected a 38.2% year-on-year increase.
The improvement with the base effect was mainly backed by the sub-index of the manufacturing sector, the data showed.
The manufacturing index soared 42.8% year-on-year in the month, while the mining and quarrying index shot up 33.4%.
The electricity, gas, steam, and air conditioning supply index also climbed 20.9% during the same period.
Turkey’s economy expanded 1.8% in 2020, one of only a few globally to avoid a contraction due to the pandemic thanks to a state-lender-led credit boom midyear.
It rebounded strongly, by 7%, in the first quarter of this year and the government sees it expanding around 20% in the second.
The government forecasts 5.8% growth this year, while President Recep Tayyip Erdoğan said it could be even higher.
The final stage in the nation’s gradual normalization process began this month, with curfews and lockdowns lifted, as well as all venues and businesses opening without restrictions.
Prospects for a strong performance in the second half of the year have been revived by a sharp fall in daily coronavirus cases as well as an acceleration in vaccinations.
Analysts have said the domestic demand would likely further rebound in the third quarter amid the easing of the pandemic-related restrictions. Exports are also expected to be boosted by recovery among Turkey’s trading partners.