Turkish industrial output expands at fastest pace in almost three years

Turkey’s industrial production grew by an annual 11 percent in November, rising for the sixth-straight month at the fastest pace since January 2018.

The increase was led by growth of 11.6 percent in manufacturing output, the Turkish Statistical Institute said on its website on Wednesday. Production of durable consumer goods surged by 22.2 percent.

Industrial output had grown by 10.4 percent in October, 8.3 percent in September and by 10.6 percent in August.

Turkey’s government says the economy probably grew last year after it cut taxes and encouraged banks to lend more to businesses and consumers. But the expansion has come at a cost. The lira sank to successive record lows against the dollar in 2020 after the central bank backed economic stimulus by keeping interest rates at below the annual inflation rate.

Production increased by 1.3 percent month-on-month, the institute said. It was the seventh-straight month of gains.

The central bank hiked interest rates to 17 percent last month, the highest level since August 2019, bringing rate increases since September to 8.75 percentage points. It has raised borrowing costs to defend the lira and to tackle inflation, which accelerated to an annual 14.6 percent in December.