Turkish capacity utilization falls 16.5 points to 64.7 percent in March

The capacity utilization rate was 63.8 percent in both January and February. 

The latest figures reveal that the affects of the downturn in the global economy have started to bite deeper into the Turkish economy. Industrial output figures for February slumped 23.7 percent, official data showed on Wednesday.   Â

 

Shortage of demand can be cited as the main reason for declining capacity utilization in February, TURKSTAT said, adding that the drop off in the domestic market affected the figures as much as 52.7 percent, while the foreign market decline accounted for 29.5 percent.

 

Exports fell 25 percent in February from a year earlier to $8.3 billion, and imports tumbled 48 percent to $8.4 billion, the latest TURKSTAT figures showed.

 

Turkey's main automotive exporters including Tofas, a joint venture between Italy's Fiat and local group Koc, as well as Ford Otosan, a joint venture between Koc and U.S. carmaker Ford, have recently suspended production temporarily as orders from Turkey and the European Union slumped.

 

Many factories in the textile industry, a leading sector in Turkey, also closed as the negative impacts of the global financial crisis began to hit the country's economy hard.

 

The country’s deteriorating economic figures and fears of recession, as well as the deep contraction in export and domestic demand, have increased calls for Turkey to secure a long awaited International Monetary Fund, or IMF, agreement.

 

According to media reports on published on Friday, Turkey and the IMF have agreed in principle on the conditions of a new loan deal worth up to $45 billion to help the country weather the global crisis. Talks with the IMF were suspended in January over government spending and steps to tighten tax inspection.

 

The IMF has said it expects the Turkish economy to contract 1.5 percent in 2009, but many economists have downwardly revised their forecasts to a contraction of 2-3 percent.

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