Turkish exporters hopeful for third quarter

ISTANBUL

CİHAN photo

Turkey’s exporters expect the decreasing trend in exports to end in the third quarter, according to a survey by the Turkish Exporters’ Assembly. 

Exports from Turkey dropped by 13 percent in July to $10.86 billion and by 8.8 percent to $84.37 billion in the first seven months of the year, compared to the same periods in 2014, due to fluctuations in parity and geopolitical risks. 

According to the survey, Turkish exporters expect the dollar-Turkish Lira exchange rate to be around 2.82 by the end of the year and euro-lira exchange rate to be 3.06. They expect the euro-dollar rate to be 1.1. 

Exporters say they see the ideal dollar-lira rate as being 2.59 and the ideal euro-lira rate as being 2.9, according to the report, which surveyed top executives from 504 Turkish exporting companies. 

TİM President Mehmet Büyükekşi said the current exchange rates are extraordinarily high, speaking at a press meeting to launch the survey on Aug. 18. 

“It all depends on whether the dollar parity at 3 Turkish Liras is competitive upon labor and production costs,” Büyükekşi said, quoted by Reuters.

According to the report, 72.8 percent of exporters believe that exports will increase or remain the same in the third quarter. They also expect to create a total of 65,000 new jobs.

Büyükekşi said the negative effects of the parity fluctuations are continuing to affect exports. 

Some 49.6 percent of respondents to the survey said their biggest problem is the currency parity, 44.4 percent said high energy costs, and 40.3 percent said high raw material and semi-product costs. 

The exporters also defined Russia, the United States, Germany, China and Iran as priority markets. The rate of exporting companies entering into new markets rose to 41 percent in the second quarter from 39 percent in the first quarter. 

Around 40,000 new jobs were created in the second quarter, and 48.2 percent of companies said their profits increased or remained the same in the second quarter. 

Speaking on Aug. 18, Büyükekşi said a general rise in exports has been observed in August after declines over the past seven months.