Turkey's economy will grow by 4.9 percent this year, well below the government's projected 5.5 percent, a business association said.
In a report distributed to the press on Friday, the Turkish Industrialists' and Business Association (TUSIAD) also predicted that year-end wholesale price inflation would be 30 percent, above the government's 20 percent target.
Turkey's gross national product (GNP) posted a 4.3 percent growth in the first half and is expected to remain strong in the second half on booming demand and low base year effects.
The association placed central government revenue and expenditure forecasts at TL 33 quadrillion and TL 46.1 quadrillion, respectively.
($1=TL 666,666)
It said that exchange rate basket depreciation would not deviate from the government target of 19.9 percent.
Exports are expected to reach $28.4 billion and imports $48.5 billion by the end of the year, in line with the government's projections, the report added.
Turkish industrial output up 3.5 percent in July Meanwhile, Turkey's industrial output rose by 3.5 percent in July compared to the same month last year, the State Institute of Statistics (DIE) announced Friday.
Meanwhile industrial production increased by 3.4 percent year-on-year in the first seven months, the DIE said.
July's modest increase in output was seen in part as a result of low base effects.
Output dropped 3.5 percent year-on-year in July last year. In the first seven months of 1999 it was down 4.3 percent.
In July of this year, manufacturing industry output rose by 4.2 percent, compared to a 4 percent plunge last year. Modest manufacturing growth continued to be affected by earthquake damage which caused a drop of 16 percent in refining output and 11 percent in chemicals - the two items accounting for 25 percent of the overall manufacturing output.
The output of Turkey's problematic textile sector, which also contributes significantly to the index, dropped 0.2 percent.
Food and beverage production showed strong growth to the tune of 21.7 percent, automobile output increased by 46.2 percent, and that of the primary metal industry and non-metal products by 7.5 percent and 9.5 percent, respectively.
The above four items accounted for more than 32 percent of the index. Utilities production increased by 6.6 percent while mining output decreased by 12.3 percent in July.
The first seven months saw a 3.4 percent output increase in the manufacturing sector and an 8.3 percent increase in utilities, while mining output dropped by 5.8 percent.
Turkey's automobile production, on the other hand, rose by 49.4 percent year-on-year in the first eight months including a dramatic 139.4 percent in August alone, the Automobile Industry Association announced Friday.
Between January and August this year automobile production totaled 294,025 units, up from last year's 196,852 units.
The association said car production increased by 49.2 percent to 192,488 units.
Commercial vehicles produced in the same period year-on-year numbered 76,538, a rise of 66.2 percent. Tractor production rose 14.8 percent to 21,772 units.
In August alone the sector's output was 34,295 units. Cars produced in August in numbered 19,987, up by a remarkable 145.9 percent year-on-year. Commercial vehicles totaled 11,192 units, a rise of 93.6 percent. Tractor production was up 643.7 percent to 3,883 units in August.
Car sales in the domestic market in the first eight months rose 83.6 percent to 289,649 units. Imported car sales were up by 121.8 percent while local cars sold only 54.4 percent more in the above-mentioned period. Meanwhile imported cars enjoyed a market share of 52.4 percent in the domestic market over the period. Commercial vehicle sales rose by 78.8 percent to 94,445 units.
Car imports over the first eight months rose by 121.8 percent when compared to that period in 1999 and numbered 151,705 units. Imports of commercial vehicles increased by 78.8 percent to 94,445. Turkey exported 53,018 cars in the same period, of which Oyak Renault produced 40,973 and Tofas 11,831. –(Albawaba-MEBG)
© 2000 Mena Report (www.menareport.com)
