Improvement Continues in Turkey's Export Climate
The Istanbul Chamber of Industry's Turkey Manufacturing Sector Export Climate Index increased from 50.5 in September to 51.1 in October. Survey results revealed that external demand conditions have continued to strengthen uninterruptedly over the past ten months.
However, in Germany, Turkey's largest export market, economic activity recorded a moderate decline in October, marking the fifth consecutive month of low performance. France experienced a similar contraction, with these two countries accounting for a combined share of around 13% of Turkey's manufacturing industry export market.
Positive developments in Europe In other regions of Europe, positive developments in economic activity have been observed. The UK continues to see an increase in production, while Spain's growth is rapidly persisting. Italy managed to boost its economic activities again after a slight decline in September.
The growth in the United Arab Emirates, one of the strongest economies in the Middle East, reached its highest pace in the last six months. Production increases also continued in Saudi Arabia, Qatar, and Kuwait, while economic contraction persisted in Egypt and Lebanon. Notably, in Lebanon, production shrinkage has reached the highest level in the last 44 months.
Strong growth in the American market The United States, which accounts for 6% of Turkey's manufacturing exports, showed a strong increase in economic activity in October. The ongoing growth trend in the country has been sustained for 21 months. In Canada, production growth was observed for the first time since May.
In Russia, economic activity recorded a moderate increase, while contractions in manufacturing production were seen in the Netherlands and Romania. Austria experienced the most severe production loss among the tracked countries; the contraction in the country reached the highest rate since the beginning of 2024.
Expert assessments on the economy S&P Global Market Intelligence Economic Director Andrew Harker evaluated the results of the Istanbul Chamber of Industry's Turkey Export Climate Index, noting that despite Germany's low performance, the overall export climate in the Turkish manufacturing sector has improved. Harker pointed out that the increase in economic activity in many key markets provides firms with various options to sustain their overseas sales, while the Middle East continues to be one of the main sources of growth, and despite uncertainties ahead of the presidential elections in the U.S., production has increased strongly.