Turkey’s statistical authority TurkStat released industrial production data in May. Turkey's industrial production surged 6.9 percent in May, compared with the same month last year, while the increase in the first five months of the year was 8.2. Manufacturing production index has increased by 7.1 percent in May and by 8.5 percent in the first five months of the year.
Considering the increase in production on the basis of sub-sectors, it is seen that the contributions from the industries such as chemicals and food are high, and in these sectors, commodity price increases, and price and turnover increases resulting from exchange rate increase have a big influence.
GROWTH FROM MONETARISM
When the sub-sectors of the manufacturing industry production are examined, it is seen that the highest increases in the production in May were chemicals (18.5 percent), other transportation vehicles (17.5 percent) and food (15.7 percent).
The increase in commodity prices in chemical production used in petroleum-based products as input, and the rise in exchange rates affect the turnovers. It is seen that both the exchange rate and inflation have the influence on the food prices. These are the sectors where it is difficult to measure the production in terms of quantity with their product ranges, firm scales and structures, and where the production indices are generated from turnover data.
For this reason, it is thought that production growth cannot be adequately cleared from monetarism.
REAL PART OF GROWTH
In the real part of growth, it is seen that the incentives to stimulate domestic demand before the election are effective, especially in the increase of durable goods. However, the contribution of export to the industrial production is limited.
