Improved demand climate for exporters

Turkey’s export climate index, announced by the Istanbul Chamber of Industry (ISO), passed the threshold and rose to 51.7 in February.

According to ISO data, the index remained below the threshold level from August 2022 to January, after staying above the 50 threshold level for 19 months. In January 2023, the index was at 49.5.

In addition to the index exceeding the threshold value, it also pointed to a monthly improvement in export demand conditions for the first time since June 2022.

All values ​​above 50 in the index indicate improvement in the export climate, while values ​​below 50 indicate deterioration.

PRODUCTION INCREASES FOR THE FIRST TIME IN 8 MONTHS IN GERMANY, THE LARGEST MARKET

In the ISO statement, “In the closing months of last year, contraction in production in the US and many European economies came to the fore. However, the latest data points to a positive turn in the course of these important export markets.

According to ISO data, economic activity in the US increased in February after a 7-month slump, while economic activity started to grow again in many European markets.

Production in Germany, the largest export market for Turkish manufacturers, increased for the first time in the last 8 months.

THE REOPENING OF CHINA WILL STRENGTHEN GLOBAL DEMAND

Commenting on the index, Andrew Harker, chief economic officer at S&P Global Market Intelligence, said: “The fact that the global economic environment is more positive in early 2023 compared to late 2022 and compared to expectations provides support. to the Turkish manufacturing industry. exporters

“The resumption of major European and US markets is the encouraging development of the latest survey period, while the reopening of the Chinese economy will help strengthen global demand in the coming months.” (Reuters)