July 8, 2020 / 12:43 PM / a month ago

Turkish factory production seen slumping more than 22% in May: Reuters poll

ISTANBUL (Reuters) - Turkey’s industrial production is expected to have contracted 22.5% annually in May due to the near economic standstill brought on by measures to stem the spread of coronavirus.

Turkey logged its first infection on March 11 and soon after many factories halted operations, leading to a larger than expected drop of 31.4% in April production.

Reuters polled six institutions for the median estimate of how much the calendar-adjusted index fell in May. Forecasts ranged between contractions of 16.6% and 31.4%.

Industrial production, viewed as a pre-cursor to economic growth, had expanded for six consecutive months before March.

Turkey’s economy expanded by 4.5% year-over-year in the first quarter of the year thanks to a strong January and February. GDP growth surged in the second half of 2019 as the economy emerged from its last recession.

The government had forecast 5% growth in 2020 before the coronavirus outbreak, but now most economists see it shrinking due mostly to a severe slump in the second quarter.

The Turkish Statistical Institute will announce the industrial production figures on July 13 at 0700 GMT.

Reporting by Ezgi Erkoyun and Nevzat Devranoglu; Editing by Jonathan Spicer

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