May 17, 2023

The automotive sector ranked first among the sectors that exported most in April with $2.7 billion. Chemicals maintained its second place with $2.4 billion, while apparel maintained its third place with $1.5 billion. The export value per kilogram increased by 18.3% compared to the same month of the previous year, reaching $1.56.

Mustafa Gültepe, Chairman of TİM: We have left behind a month where we felt the negative effects of global and national developments on our exports. Against all the odds, however, I believe that we will celebrate the 100th anniversary of our Republic in 2023 by completing the next eight months with the best possible export performance.

Türkiye achieved $19.3 billion of exports in April, while the first four months’ exports reached $80.9 billion, and the exports for the last 12 months were $251.7 billion.

Mustafa Gültepe, Chairman of the Türkiye Exporters Assembly (TİM), stated that April was a month where the negative effects of global and national developments on exports were felt. Gültepe continued as follows:

“According to General Trade System (GTS) records, we completed April with $19.3 billion in exports. We are down 17.2% compared to the same month last year. Our exports for the last 12 months reached $251.7 billion, an increase of 4.9%, while we closed the January-April period with a 3% loss at $80.9 billion. The automotive sector contributed the most to our exports last month with $2.7 billion. Our other sectors in the top five were chemicals with $2.4 billion, apparel with $1.5 billion, electrical and electronic equipment with $1.2 billion, and steel with $1.1 billion. We saw an increase in our exports of grain, olives and olive oil, defense and aerospace, fresh fruits and vegetables, tobacco, and hazelnuts last month. Fourteen of our provinces increased their exports, with Istanbul, Kocaeli, Bursa, Izmir, and Ankara being the top five exporters. Last month, 1,449 firms joined our export family. Our unit export value increased by 18.3% compared to the same month last year, reaching $1.56.”

PARITY CONTRIBUTED POSITIVELY TO EXPORTS FOR THE FIRST TIME AFTER MONTHS

Stating that they exported to 217 countries in April, Gültepe emphasized that exports to 81 countries increased. Gültepe underlined that Türkiye’s top export destinations were Germany, the USA, Iraq, Italy and the UK, while exports to Saudi Arabia and Kazakhstan recorded remarkable increases. Stating that the parity also reflected positively on exports after a long time, Gültepe said, “In April, the parity effect provided a positive value of 152 million dollars. However, since the beginning of the year, we have a loss of 972 million dollars due to the parity effect.”

INCREASE IN COSTS EXCEEDS EXCHANGE RATE INCREASE BY FAR, MARKET LOSS BEGINS

Explaining that Türkiye is going through a period in which national and international developments have been exhibiting negative impact on exports, Gültepe reminded that the stagnation in demand continues due to the ongoing monetary tightening policies in global markets such as Europe and the US. Emphasizing that cost increases negatively affect competitiveness in global markets, Gültepe said, “Cost increases have far exceeded the increase in exchange rates. For this reason, we started to lose our competitiveness. Our customers started to shift their purchases to competitor countries due to both our inability to meet our prices and the effect of falling logistics prices. As we always say, the exchange rate must increase at least as much as inflation so that Turkish exporters can maintain their competitiveness. Otherwise, we will continue to lose markets. It may take years to regain the customers we have lost.”

TİM Chairman Mustafa Gültepe concluded his words as follows:

REDUCTION IN ELECTRICITY AND NATURAL GAS PRICES SIMPLIFIE OUR EXPORTERS’ WORK

“The reductions in electricity and natural gas prices since the beginning of the year have simplified our exporters’ work by reducing costs, especially in sectors that use high energy. The recovery in our provinces affected by the earthquake in Kahramanmaraş 3 months ago continues at a great pace. As the umbrella organization of our export family, we are trying to bring our companies together with the right buyers through trade delegations and buying missions as well as fairs. Therefore, we believe that the decline in our exports in April was short-term and temporary. Against all the odds, however, I believe that we will make the best use of the next eight months and complete 2023, when we will celebrate the 100th anniversary of our Republic, with the best possible performance in exports.”

Source: Türkiye Exporters Assembly
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