Exports and industrial production increased in March

Exports and industrial production increased in March

Total exports from Turkey reached to $3.68 billion in March with an increase of 27.3% compared to March 2002. Despite this increase in exports, imports grew by 44.8% in March up to a record level of $5.55 billion. Consequently, the 98.7% increase in foreign trade deficit compared to previous year raises worries. Foreign trade deficit by ;March is calculated as $1.86 billion. In such case, export coverage is retreated to 66.4% from 75.5%. According to the recent Central Bank surveys, economic growth raised from 3% up to 3.9% level. Taking into consideration import and export figures for the first three months of this year, it is observed that foreign trade deficit for the first quarter has reached to $4.07 billion. Export coverage in the first quarter decreased to 71.1% from 77.2% when compared to same period a year ago. It is expressed by the authorities that domestics should be preferred rather than foreign products in order to hinder huge export volumes recorded in March which is accelerated by low exchange rates. It is also stressed that foreing trade deficit for February 2001-February 2002 period was $8.5 billion, whereas it widened and calculated as $16.4 billion in February 2002-February 2003 period. On the other hand, together with exports, industrial production showed an increase as well in March. This year a 5.6% increase is observed compared to March 2002. Last year same period industrial production rose 19.5% compared to same period of 2001. Increase for the first quarter of this year is determined as 7.5% for production. Exports are thought to be most effective facto on this recovery. Rise in exports despite appreciation in Turkish Liras creates a good impression regarding the economic recovery. It is remarkable that demand for export in automobile and white goods industry picked up as well as domestic demand. Total liquid steel production for March in Turkey was 1.5 million tons, which is 17% higher than same period of 2002. And in the first quarter total liquid steel productin was 4.3 million tonns, which is equivalent to an increase of 24.8% compared to the first quarter of 2002. In January-March period, billet production reached to 1.5 million tonns with a 4% increase for March and 18.7% increase for first quarter, according to 2002 figures.