Growth continues in export climate

The April 2023 results of the Istanbul Chamber of Industry (ISO) Turkish Manufacturing Industry Export Climate Index, which measures the operating conditions of the Turkish manufacturing sector in the main export markets, have been announced. All figures measured above the threshold value of 50.0 in the index indicate an improvement in the export climate, while values ​​below 50 indicate deterioration.

Threshold value above 50.0 for the third month in a row

Istanbul Chamber of Industry Turkish Manufacturing Industry Export Climate Index, which was 52.6 in March, became 53.1 in April, and the threshold value remained above 50.0 for the third month in a row, showing that the improvement in the export climate continues. The improvement experienced also took place at the most significant level of the last year.

Best performance of the last year in Germany, UK and USA

Production growth in Germany, which is the biggest export market of the Turkish manufacturing sector with a share of 9 percent, gained momentum and reached the highest speed of the last year in April, pointing to an improvement after the slowdown at the beginning of this year. Similarly, while the growth rate in the UK reached the highest level of the last year, the economic activity in the USA realized the strongest increase in 11 months. Although France, Italy and Spain remained in the growth zone in the first month of the second quarter, signals of weak demand in Europe’s manufacturing sector drew attention. Production fell in April in the Netherlands, Austria, Poland and the Czech Republic.

Recovery continues in China, recovery in Russia

Some regions of the Middle East maintained their strong growth trend in April as well. The United Arab Emirates (UAE) registered a significant expansion in non-oil economic activity and its growth rate reached the highest level in the last six months. Production accelerated slightly in Saudi Arabia, while Qatar continued its strong growth. The continued decline in economic activity in Egypt and Lebanon was recorded as a relatively negative development. Demand was again weak in parts of Sub-Saharan Africa. While production decreased in South Africa and Kenya, the easing of the cash crisis in Nigeria provided a recovery in economic activity.
The growth that started with the loosening of the restrictions on the epidemic in China at the beginning of this year continued in April, and the country’s economy continued its recovery trend. Production showed a strong increase, albeit slightly decelerating.