Exports may gain momentum again, says association

ISTANBUL

With the key elections now over, Türkiye should again focus on production and exports, which may gain momentum in the remainder of the year, Mustafa Gültepe, the head of the Turkish Exporters’ Association (TIM) has said.

Exports rose significantly in the past two years, Gültepe said, adding that recently however the increase in costs and the level of exchange rates hurt exporters’ competitiveness.

“Unfortunately, we have started to lose markets. We, on the contrary, need to reach out to new markets and earn more from exports.”

Hopes, however, are running high among Turkish exports, Gültepe said.

“Global demand is expected to rebound in the second half of this year. If the factors, which affect our competitiveness, wane swiftly, we believe our exports may gain momentum again.”

Türkiye’s exports plunged by 17.2 percent year-on-year in April to $19.3 billion, according to data from the Trade Ministry.

Foreign trade volume contracted by 10 percent from April 2022 to $47.5 billion, with imports falling 4.5 percent on an annual basis to $28.2 billion.

The foreign trade deficit widened nearly 44 percent to $8.85 billion.

The export/import coverage ratio declined from 79.2 percent in April last year to 68.6 percent last month.

In the first four months of 2023, the country’s export revenues fell by 3 percent from a year ago to $80.9 billion.

Türkiye’s foreign trade gap increased 33 percent to stand at $43.5 billion.