Turkey white goods sales shrink 31% after tax cut reversed
Turkish sales of white goods such as fridges and washing machines dropped an annual 31 percent in July after the government reversed tax reductions on the items.
The sales fell to 459,658 units last month, local media including the Diken news website reported, citing data from the White Goods Manufacturers’ Association of Turkey (TÜRKBESD).
The decline compared with a fall in sales of 12 percent to 3.4 million units in the first seven months of the year.
Turkey’s government introduced temporary tax cuts and incentives on various consumer items in order to stimulate economic growth though was forced to reverse some of the measures after the budget deficit widened, threatening a year-end target. The economy emerged from a recession in the first quarter of the year. However, many financial institutions are predicting an annual contraction in 2019.
Production of white goods slid an annual 10 percent to 2.03 million units in July. The decrease totaled 2 percent in the first seven months.
The slowdown came after global demand for the goods also eased, TÜRKBESD said in a statement.