Industrial output rose by 11.7 per cent in June when compared to the same month last year, above market expectations thanks to economic confidence.
Analysts are increasingly upbeat that Turkey, saddled with a massive domestic debt load, can meet a five per cent gross national product (GNP) growth target for 2003 and slow down galloping inflation.
An 11.7 per cent yearly annual jump in industrial output in June has eased fears for the possible impact on economic growth of a recent rally in the Turkish lira, a worry for the country's exporters.
"I think it's all about confidence. I think it's a positive surprise, and we continue to be surprised positively by industrial output data in Turkey," said Reinhard Cluse, economist at UBS Warburg in London.
Praising the acceleration of economic reform, the International Monetary Fund last week approved the latest $500 million loan tranche to Turkey under a $16 billion pact.
