Turkey'sDeficit Down -Industrial production at new high

Turkey's current account deficit went down 9.9 billion USD to 27.5 billion USD in the first five months of 2012 compared to the same period of last year, while at the same time Turkeys industrial production index rose by 5.9 percent in may.
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According to a statement released from the Turkish Central Bank on Wednesday, between January-May 2012 the foreign trade shrunk 8.3 billion USD to 28.9 billion USD, the net income from services increased 879 million USD to 4.5 billion USD and the net expenditure dropped 750 million USD to 3.2 billion USD.

Tourism revenue under the title of services balance decreased 341 million to 5.9 billion USD and tourism expenditure shrunk 554 million USD to 1.5 billion USD in the first months of this year comparing to the same period of 2011.
http://www.turkishweekly.net/news/138174/turkey-39-s-current-account-deficit-down.html


http://www.hurriyetdailynews.com/industrial-production-at-new-high-supports-growth.aspx?pageID=238&nID=25107&NewsCatID=344

Turkeys industrial production in May jumps 5.9 percent, beating the market forecast. The figure eases concerns over annual growth, an economist comments
Capital goods registered the highest increase in industrial production with a 9.6 percent rise year-on-year in May, TÜK says. Hürriyet photo

Capital goods registered the highest increase in industrial production with a 9.6 percent rise year-on-year in May, TÜK says. Hürriyet photo
Industrial production, a leading indicator of growth, nearly doubled market expectations in May, supporting optimistic estimates that the official annual growth target of 4 percent may be achieved.

Capital goods, consumer non-durables and intermediate goods production registered the highest increases.

Turkeys industrial production index rose by 5.9 percent in May 2012 compared with the same month last year, while the figure was 7.5 percent compared with the previous month, the Turkish Statistical Institutes (TÜK) monthly report revealed yesterday. Market expectation was 3.2 percent.

There was no calendar effect year-on-year on the industrial production, while on a monthly basis seasonal and calendar-adjusted industrial production rose 1.1 percent.

Industry Minister Nihat Ergün said yesterday that the industrial production index had hit the highest May level since 2005, when the new index series was introduced.

Industrial production has been constantly increasing for the last 30 months, he said, adding that the figures supported the government view that the 4 percent growth target would be easily met.

Economic activity in May is in line with the expectations of the Central Bank. The bank predicts a slight improvement in economic activity in the second quarter over the first and is implementing a monetary policy accordingly, Gülay Elif Girgin, an economist at the Oyak Yatrm told Anatolia news agency.

In the sub sectors, the level of industry, mining and quarrying increased by 4.2 percent, manufacturing increased by 5.8 percent and the electricity, gas, steam and air conditioning supply increased by 7.3 percent in May compared to the same month of the previous year, TÜK said. Concerns regarding economic growth are eased further with these production figures, said Gülizar Türk, manager of the economic research department at Anadolu Yatrm.

2. quarter figures awaited

First-quarter growth was up year-on-year, but it was slightly down compared with the previous quarter. Second-quarter growth figures will be important, she said.

Turkeys economy grew 3.2 percent year-on-year in the first quarter, while the figure was 5.2 percent in the last quarter of 2011.

However, Finansbank Chief Economist nan Demir said it was too early to revise growth estimates upward, as there are downward risks to growth due to ongoing uncertainties in the eurozone in the second half of the year, according to Reuters. Industrial production was up 3.2 percent in the first five months of the year from the same period last year, said Gizem Öztok Altnsaç, an economist at the Garanti Yatrm, adding that this was proportionate to her annual growth forecast of 2.5 percent.
Capital goods production rose 9.6 percent year-on-year in May, marking its highest increase in the main industrial categories. This was followed by a 7.8 percent increase in consumer non-durables, and by a 5 percent increase in intermediate goods production. Energy production recorded a 2.5 percent increase. Durable consumer goods production was up 2 percent.

Transportation vehicle manufacturing recorded an impressive 195.1 percent increase, followed by 57.4 percent in computer, electronics and optical products production.

The most significant contributor in May is transportation vehicles [production], most probably due to locomotive manufacturing, she said, adding that computer production had been a leading contributor thanks to the FATH Project to deliver smartboards to Turkish classrooms.