Turkey’s metal, building industries in coma
Declining production in key industrial sectors is seen as an omen that the worst of Turkey’s economic crisis might still be to come.
Production in Turkey’s crisis-hit industrial sector — the backbone of the economy — is in general decline, with some major sub-branches hit even harder, auguring deeper economic turmoil and mass layoffs down the road.
Figures by the Turkish Statistical Institute and the Istanbul Industry Chamber point to sharp declines in the automotive, white appliances and electronics industries amid a fast-shrinking domestic demand and climbing prices under the impact of last year’s currency shock.
The turmoil in the construction sector, which was the first to plunge into crisis, has spilled over to suppliers in sub-sectors such as ceramics, cement, iron and steel, where sharp declines are similarly observed. And while the lira’s depreciation has given some impetus to exports, its impact on industrial production has been limited.
Various sectors are trying to stay afloat with tax reductions introduced by the government, but once such incentives come to an end after the March 31 local elections, these sectors are expected to face even harder times and possibly mass layoffs.
