Turkish producers have seen a continued restoration in exterior demand circumstances as the primary quarter got here to a detailed, official knowledge confirmed on Tuesday.
But the outlook stays unsure, hinging totally on developments relating to U.S. President Donald Trump’s sweeping tariff regime.
The Manufacturing Export Climate Index rose to 51.5 in March, up from 51.1 in February, the Istanbul Chamber of Industry (ISO) stated.
Readings above the impartial 50 threshold point out an enchancment within the export local weather, whereas values beneath recommend deterioration. The newest determine marks the fifteenth consecutive month of enchancment.
The uptick mirrored a restoration in a number of of Türkiye’s key export markets, notably within the Middle East, the chamber stated.
Saudi Arabia led the area in manufacturing progress throughout March, with the United Arab Emirates (UAE) additionally exhibiting sturdy momentum.
Economic exercise in Kuwait additionally expanded, whereas Egypt, Lebanon, and Qatar confirmed indicators of weakening. These six international locations collectively signify round 7% of Türkiye’s manufacturing exports.
Germany breaks 10-month stagnation streak
In Europe, Türkiye’s largest export market, Germany, posted its first manufacturing improve in 10 months. While modest, the expansion is seen as an encouraging sign from the area.
The United Kingdom and the Netherlands additionally returned to growth territory, whereas Italy, Spain, Poland, and Greece continued their upward traits. In distinction, France and Romania skilled additional contraction.
Europe is among the many hardest hit by tariffs Trump unleashed final week, which despatched the worldwide financial system right into a tailspin.
Trump has stated the tariffs – a minimal of 10% for all imports, with focused charges of as much as 50% – would assist the U.S. recapture an industrial base that he says has withered over many years of commerce liberalization.
Türkiye is topic to the ten% baseline tariff, decrease than many different international locations, prompting authorities officers to level out the potential advantages of being a comparatively cheaper supply of products.
The U.S., which accounts for 7% of Turkish manufacturing exports, maintained a sturdy efficiency final month, the ISO stated.
March marked the twenty sixth consecutive month of progress in manufacturing, and the growth was the strongest to this point in 2025.
However, different North American markets equivalent to Canada and Mexico noticed the steepest declines in manufacturing amongst all international locations surveyed.
Positive traits in Asia, Africa
Elsewhere, financial exercise in Russia barely contracted after 5 months of progress.
India recorded the strongest non-Middle Eastern progress, with output climbing to a seven-month excessive. In Nigeria, manufacturing manufacturing noticed its quickest rise for the reason that starting of the yr.
Optimism tempered by coverage uncertainty
“Economic exercise expanded in most of Türkiye’s prime 10 export markets in March. This growth introduced a level of optimism to Turkish manufacturing exporters as the primary quarter concluded,” stated Andrew Harker, economics director at S&P Global Market Intelligence.
“However, some short-term uncertainty persists until the direction of U.S. trade policy and its global implications become clearer,” Harker added.
Source: www.dailysabah.com