ISTANBUL, (Reuters) – Turkey’s industrial output is forecast to rise 6.5% in March. This increase will be the 21st consecutive month. Factory activity continues to grow despite high inflation and a weak local currency. A Reuters poll was released on Tuesday.

Since 2020, coronavirus controls were relaxed in the United States. Year-on-year, growth has been positive. Monthly, the index lost 2.4% due to power cuts and other industrial equipment that were caused by an Iranian technical disaster.

According to Reuters, seven institutions gave a median estimate of 6.5% year-on-year growth in their calendar-adjusted industrial output index for March.

The index was used as an indicator of economic growth and is forecast to rise between 2.5% – 12.5%.

According to economists, the rate of growth for the index will slow over the next months before it reaches a neutral point around the summer. The Russian invasion of Ukraine may lead to a drop in foreign demand and disruption to supply chains, which could impact industrial production.

After the coronavirus virus outbreak, April 2020 saw output drop by more than 30%. Since then, it has made strong recoveries because the subsequent measures have largely avoided the manufacturing sector and all remaining restrictions have been lifted in July last year.

Turkey’s economy expanded by 11% in 2013, a significant increase from the previous year. However, a sharp fall in the value of Turkish liras in December caused serious disruption to company budgets and households, and sent prices for imports soaring.

Growth in 2022 will be hampered by the late-2021 currency crisis, which saw inflation jump 70%, and fallout from Russia’s invasion of Ukraine.

According to the central bank and government, the growth rate for the first quarter of 2022 is expected to be around 7.7%.

On May 13, the Turkish Statistical Institute (Turkish Statistical Institute) will publish March industrial production statistics at 0700 GMT.