Turkish output drops, retail sales grow at slowest pace in 15 months

Turkey’s industrial output fell for the second month in three on a month-on-month basis, while retail sales expanded at the slowest annual pace since December 2020.

Industrial production declined by 1.8 percent in March compared with February on a seasonally and calendar-adjusted basis, the Turkish Statistical Institute said on Friday. Output rose by 9.3 percent annually, down from 13.3 percent growth in February.

Turkey’s government is seeking to stimulate economic growth, production and exports by keeping interest rates at a fraction of the inflation rate to encourage borrowing and investment. But the lax monetary policy has led to spiralling inflation, which reached an annual 69.97 percent in April, and a slump in the value of the lira.

Retail sales grew by an annual 2.5 percent, the institute said in a separate report. That was less than half of February’s 6.5 percent expansion. On a monthly basis, sales increased by 0.3 percent versus 0.5 percent in February.

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