Turkish Industrial Production up 7.5 percent.

With the surge in industrial growth up by 11.4 percent, the Turkish economy has been boosted the industrial production currently experiencing an increase of 7.5 percent on last year alongside record levels of exports.

Exports in the last month were up 44 percent to $11 billion, the second-highest month on record, as sales of goods to Europe remains strong and despite the economy expanding at its slowest rate since 2002 alongside ailing domestic consumer confidence.

Within this period Gross domestic production increased by 3.4 from the last quarter, although consumer confidence fell to its lowest since records began back in 2003.

Economists however fear a slowdown, as the Constitutional Court voted to hear a case to outlaw the ruling party due to the supposed threat they pose to secularism on March 31, and as this is likely to last a couple of months the uncertainty it will case will probably deter spending and reduce investment.

Between September and February the Turkish central bank reduced the benchmark interest rate by 2.25 percentage points to 15.25 percent.

As a result any increase in domestic spending will most likely be attributed to the reduction in the cost of borrowing as the government aims to reduce the impact of the global credit crunch.

Story link: Turkish Industrial Production up 7.5 percent.