ISTANBUL, May 5 (Reuters) - Turkey's industrial production index is expected to have contracted 1.45% year-on-year in March, extending its decline, a Reuters poll showed on Friday, as the impact of February's earthquakes continued to impact the manufacturing sector.
Industrial activity bounced back strongly after the initial coronavirus wave in April 2020 and expanded for more than two years straight. The index dropped 8.2% in February as the earthquakes devastated the country's southern region.
Although annual growth has slowed significantly since the summer, with demand declining due to the wider global slowdown, especially in Turkey's main trading partners.
The median estimate in the Reuters poll of six institutions showed a year-on-year contraction of 1.45% in the calendar-adjusted industrial production index (TRIP=ECI) in March.
Forecasts ranged between a contraction of 4.00% and an expansion of 1.30%
President Tayyip Erdogan's economic programme prioritises growth, exports, investments and employment while cutting interest rates.
The central bank cut its policy rate by 500 basis points last year in line with Erdogan's unorthodox policy, despite soaring inflation. It justified the cuts by saying financial conditions must remain supportive to maintain the growth in industrial production.
It further cut the benchmark rate by 50 basis points to 8.5% after the earthquakes to support the recovery of the real sector and said last month that the recovery in the region has been stronger than expected.
The Turkish Statistical Institute will announce March industrial production figures at 0700 GMT on May 10.
