Turkish Economy Shows First Warning Sign as Confidence Tanks

(Bloomberg) --

Turkish manufacturers’ confidence in the economy has plunged the most since the 2008 global financial crisis, the first key piece of data reflecting the coronavirus’s toll on local businesses.

Fifteen more patients died on Wednesday, increasing the death toll to 59 in Turkey, Health Minister Fahrettin Koca said in a tweet. With 2,433 people infected, manufacturers’ outlook turned pessimistic after five straight months of optimism. The seasonally adjusted index maintained by the central bank dropped 8.2 points to 98.6 in March. Values under 100 indicate pessimism.

Manufacturers’ capacity utilization rate also slumped, the central bank data showed.

The government has shut down more than 200,000 businesses to try to slow the spread of the virus, while announcing a slew of financial aid measures to keep companies from cutting jobs, including tax cuts and payment deferrals.

Education Minister Ziya Selcuk said school closures were extended until April 30. While two Covid-19 patients over the age of 60 have recovered, it’s necessary for citizens to stay at home to prevent the virus from spreading, Koca said. Interior Minister Suleyman Soylu said the government could take a few more steps to prevent the virus from spreading before declaring a curfew, according to TV24 television.

“If our citizens declare their own state of emergency, then we may not have to take more serious measures for now,” Soylu told TV24.

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