Exporters confident $265 bln target within reach

ISTANBUL

Encouraged by the steps the new economic team has taken over the past two and a half months, Türkiye’s exporters have voiced optimism that the target of generating $265 billion in export revenues appears to be within reach.

The increase in the foreign exchange rates, albeit limited, came as a relief to exporters, said Mustafa Gültepe, the president of the Turkish Exporters’ Assembly (TİM), noting that the rates had remained flat for a long period of time.

Gültepe noted that there have been positive developments in exporters’ access to financing.

The daily limit for rediscount credits was raised to 1.5 billion Turkish Liras, while the small and medium-sized enterprises’ (SMEs) share in rediscount loans was increased, Gültepe said.

“We welcome the Central Bank’s decision that export loans will be exempt from credit restring measures…We see all those measures as important steps taken toward helping to reach the export targets.”

They expect monetary tightening policies to remain in place for some more time in the U.S. and Europe, Gültepe said.

“However, we also anticipate that the economic activity will recover in those regions in the final quarter of the year. The recovery in our main export markets will boost our exports.”

Gültepe recalled that Türkiye has set a target of generating $265 billion in export revenues this year.

“We will make all the efforts in the remaining five months of the year and meet this target,” he said, adding that despite the February earthquakes and the stagnation in export markets, the Turkish economy is continuing to grow.

The textile and apparel industries are key exporting sectors, Gültepe noted.

The two sectors collectively generate around $32 billion in export revenues, according to Gültepe. “We set medium-term export targets of $40 billion and $20 billion for the apparel and textile industries, respectively. With our brands and the skilled workforce, we have the potential to achieve this target.”

Türkiye’s exports amounted to $143 billion in the first seven months of 2023, declining slightly from $144 billion in export revenues generated in the same period of last year.

In June alone, exports grew by 8.4 percent year-on-year to $20 billion, with the automotive, chemicals and textile sectors accounting for $2.7 billion, $2.1 billion and $16 billion, respectively, of all export revenues.

From January to July, the country’s imports rose by 5.1 percent annually to hit $217 billion. The foreign trade deficit widened 18.2 percent year-on-year to $73.6 billion in the first seven months of 2023.