March Results of ICI Turkish Export Climate Index Were Announced

• 01.04.2020
• News

Istanbul Chamber of Industry (ICI) Turkish Manufacturing Industry Export Climate Index which measures the activity conditions of Turkish manufacturing industry in the primary export markets receded to 35,7 with a strong decrease in March because of COVID-19 pandemic which caused an economic deterioration across the world. The index pointed out to a significant deterioration in export climate of Turkish manufacturers. Decrease in the index realized in a higher level than the global financial crisis period and recorded in the most apparent level since January 2002, the serial start.

Activities decreased in almost all markets in March. While the country which experienced the strongest shrinkage was Italy, economic activities in Germany, United Kingdom, France and Spain were experienced strong decreases as well. While Chinese economy recorded stability indications following a strong shrinkage in February, the strongest deterioration in demand conditions of USA was recorded since February 2009.

March 2020 results of Istanbul Chamber of Industry (ICI) Turkish Manufacturing Industry Export Climate Index which measures the activity conditions of Turkish manufacturing industry in primary export markets were announced. All figures measured above 50,0 which is the threshold value in the index point out to improvement while figures under 50 point out to deterioration in export climate.

The index announced by ICI on 10th day of each month since April 2019 will be announced on 8th day (or the following business day) of each month in order to provide the information to the receivers in the shortest time period. Istanbul Chamber of Industry - Turkish Manufacturing Industry Export Climate Index showed a strong decrease in March when COVID-19 caused deterioration in the larger part of the global economy. Index which had been measured as 50,4 in February receded to 35,7 in March and pointed out to a apparent deterioration in export index of Turkish manufacturers. Decrease in the index realized in a higher level than the global financial crisis period and recorded in the most apparent level since January 2002, the serial start.

It was stated that all of the countries where IHS Markit PMI surveys were applied experienced shrinkage in their economic activities in March. Nigeria and India where the surveys had been completed before taking strict precautions in order to prevent virus to be spread became the exceptions of this situation.

The country which experienced the strongest recession in its economy: Italy

As the reflection of the strong impact of curfew applied because of COVID-19 pandemic on the economy, the country of which production recessed in the highest level became Italy which consists over five percent of the export of Turkish manufacturing industry.

Demand in other European markets was affected in a negative way at the end of the first quarter since the epicenter of the pandemic moved from its beginning point in Asia to Europe. Economic activities in Germany, United Kingdom, France and Spain experienced strong decreases.

Chine showed stability indications after February

Many Asian markets continued to be affected in a negative direction. While Chinese economy showed stability indications following a dramatic shrinkage in February, other economies especially Singapore and Hong Kong stayed in the shrinkage zone distinctively. COVID-19 pandemic gained speed in March in USA and caused the most dramatic deterioration in demand conditions since February 2009.

S.Arabia moved to the negative zone for the first time

While economic activity in United Arab Emirates, Egypt and Qatar in Middle East continued to slow down, Saudi Arabia moved to the negative zone for the first time since August 2009 when the survey had been launched. One of the most dramatic decreases in the production was experienced in Lebanon among all countries followed up.

And lastly, production in Sub-Saharan Africa and South America where pandemic incidents broke out relatively later recorded more moderate slowdown compared to the other regions generally.

Andrew Harker, Deputy Director of IHS Markit assessing the Istanbul Chamber of Industry - Turkish Manufacturing Export Index said that: “Turkish Manufacturing Industry Export Climate Index put forward the impact of COVID-19 pandemic on global economy in March and the challenges which exporters faced with in terms of receiving new purchase orders in an environment where nearly all markets experienced shrinkage. Deterioration in export climate realized in a worse level than all stages of 2008-2009 global financial crisis. In this period when the light at the end of the tunnel is barely apparent, expectations regarding the following few months are very weak.”