Production of industrial goods accelerates by 8.3% in June
In a recent announcement, Industry and Technology Minister Mehmet Fatih Kacır highlighted the robust performance of Turkey's industrial production. The Turkish Statistical Institute (TÜİK) reported an 8.3% increase in industrial production for June 2022, compared to the same month in 2021.
This growth is mainly driven by a strong expansion in the manufacturing sector, which experienced a 9.5% increase year-on-year in June 2022. High-technology products showed the strongest growth within industrial production for the same period.
The manufacturing growth is supported by robust demand and integration with European Union (EU) supply chains, particularly benefiting sectors like automotive and machinery exports, which often include high-technology components.
Key contributors to this growth include:
- Manufacturing sector surge: Manufacturing output grew 9.5% year-on-year, marking a significant increase compared to other industrial subsectors such as mining and quarrying (which slowed) and electricity production (which even declined slightly).
- EU supply chain integration: This connection has been an important factor driving manufacturing, especially in high-tech products intended for export to EU markets.
- Export demand in machinery and automotive industries: These sectors frequently incorporate advanced technologies and are major growth engines within Turkey's industrial production landscape.
While overall industrial production increased, the growth is specifically centered on manufacturing with a high-technology focus, reflecting both domestic capabilities and international trade dynamics.
Other factors like currency depreciation and inflation exert pressure on energy-dependent sectors (textiles and chemicals), but the high-tech manufacturing subsectors benefit from EU demand and supply chain ties, mitigating these challenges.
It's worth noting that the unadjusted industrial production index showed a 9.16% annual increase in June 2022. However, the electricity, gas, steam, and air conditioning supply subsector showed a 1.1% decrease in the same month.
The mining and quarrying subsector saw a 2.3% increase in June 2022, but it decreased by 5% in the same month the previous year. On the other hand, the manufacturing subsector increased by 0.9% in June 2022, marking a steady growth trend.
Minister Kacır emphasized plans to continue accelerating Turkey's development through value-added production, employment-supporting steps, and exports. The recent growth in Turkey's industrial production, particularly in the high-technology product group, presents an encouraging outlook for the country's economic future.
[1] Turkish Statistical Institute (TÜİK) press release, June 2022. [2] Ministry of Industry and Technology press release, June 2022. [3] Central Bank of the Republic of Turkey report, June 2022.
The growth in Turkey's industrial production is primarily attributed to the robust expansion in the manufacturing sector, specifically high-technology products. This expansion is supported by robust demand, integration with European Union (EU) supply chains, and export demand in sectors like automotive and machinery industries.
The manufacturing growth, focused on high-technology products, reflects both domestic capabilities and international trade dynamics in the industry, while also contributing to Turkey's overall finance and business sector.
