The export climate index rose to 51.2 in January, marking the 13th consecutive month of improvement. Istanbul Chamber of Industry (ISO) Turkey Manufacturing Sector Export Climate Index increased to 51.2 in January, showing sustained improvement for the past 13 months. The results for the ISO Turkey Manufacturing Sector Export Climate Index, which measures the business conditions in Turkey’s main export markets, were announced for January. All figures measured above the threshold value of 50 indicate improvement in the export climate, while values below 50 signal deterioration. According to the results, the ISO Manufacturing Sector Export Climate Index, which was 50.9 in December, rose to 51.2 in January, indicating improvement for the 13th consecutive month in external demand conditions. This improvement, although moderate, was the most significant since August 2024.

WEAKNESS IN EUROPE NEGATIVELY IMPACTED Manufacturing exports in Turkey’s largest foreign market with an 8% share, Germany, stagnated in January following a 7-month decline in production. Despite a slowdown in economic activity in the United Kingdom and the U.S. compared to the end of 2024, they still remained in expansion territory in January. Spain and Russia, which showed strong production growth among Turkey’s top 10 export markets last month, were the other two countries. However, signs of weakness observed in some important European markets and in other countries had a negative impact on the overall outlook. Production in Italy, France, the Netherlands, and Romania started the new year with contraction. The decline in Romania was the highest rate in the country’s 19-month survey history. HIGHEST GROWTH IN MIDDLE EAST COUNTRIES The Middle East maintained its status as the region with the highest growth rates. Expansion in Saudi Arabia reached the highest pace in the last 1.5 years, while non-oil economic activity in the United Arab Emirates (UAE) continued to show strong growth. Similarly, production saw strong increases in India and Kuwait. The most significant weakness in economic activity among the countries surveyed was observed in South Africa. This decline also reached the highest pace in the last 3.5 years.