Covid-19 hits Turkish manufacturing

Measures by Turkey’s government to combat coronavirus has resulted in a 13.4 percent contraction year on year in the manufacturing sector, leaving it to operate at 61.6 percent of capacity.

The Turkish Central Bank (CBRT) reported that the rate fell 13.7 percent compared to the last month and seasonally adjusted capacity utilization rate reduced by 14.3 percent to 61.9 percent on a monthly basis in April, the bank survey shows.

The Business Tendency Survey, in which 1727 manufacturing businesses were surveyed in April, showed that capital goods manufacturing experienced its sharpest fall in the industry.

The Business Tendency Survey has been co-financed by CBRT and the European Commission since May 2007 and became a part of the “Joint Harmonized European Union Programme of Business and Consumer Surveys.”

The Survey shows that the production of the investment goods fell to 51.4 percent in April from 76.5 percent of last month, March 2020.

The capacity utilization rate in the manufacture of consumer goods fell from 73.6 percent to 58.4 percent, and durable goods production reduced from 72.2 percent to 51.2 percent compared to last month. Capacity utilization in the manufacture of intermediate goods decreased from 75.7 percent to 65.5 percent, and in non-durable consumer goods, the capacity decreased from 73.9 percent to 59.8 percent from March to April.

E-commerce support for SMMEs

Turkish Trade Minister Ruhsar Pekcan said that during the pandemic, her ministry would be helping small to medium enterprises as these companies are suffering.

She stated that more than ten electronic commerce sites and location providers participated and supported the campaign in the first place.

“Some e-commerce sites reduced their maturity for SMMEs, while others reduced their commission rates. Some of these sites promised employment for SMMEs, and some prepared special packages for our SMMEs.” Turkish Trade minister shared details.

The Turkish government announced a four-day lockdown from April 23 and April 27 on 31 provinces to fight against Coronavirus. The curfew started with a national holiday as Turkey celebrated National Sovereignty Day and Children’s Day and the beginning of the Islamic holy month of Ramadan.

Turkey targets return to normal toward end of May, Erdogan says

The post Covid-19 hits Turkish manufacturing appeared first on IPA NEWS.

from IPA NEWS https://ipa.news/2020/04/26/covid-19-hits-turkish-manufacturing/