Turkey’s exports decline 13 percent in July

Turkey’s exports decline 13 percent in July

Turkey’s exports decline 13 percent in July

AFP photo

Turkey’s exports decreased by 13 percent in July to $10.8 billion compared to July of the previous year, due mainly to the plunge in the commodity process and losses in euro-dollar parity, said the Turkish Exporters’ Assembly (TİM) in a written statement Aug. 1. 

The exports decreased by 8.8 percent in the first seven months of the year to $84.3 billion compared to the same period of 2014. The 12-month exports thus declined to $148 billion by a 4.9 percent from the same period of the previous year, according to the TİM data. 

TİM President Mehmet Büyükekşi said the decrease in exports resulted from a contraction in commodity prices, slow-down in global trade and losses in euro-dollar parity. 

“Our industrial and agricultural exports actually rose 4.1 percent on a kilogram basis in July from the same month of 2014. We saw a 6.9 percent increase in our exports to the European Union in a euro basis. These data show that our exporters sold in a higher amount of goods and continue to increase their share in global markets,” said Büyükekşi. 

Büyükekşi said the negative effect of the parity was estimated at around $8 billion for this year. 

“We reached this loss only in the first seven months of the year. The loss in Turkey’s exports is around $8 billion compared to 2014 and this loss is mainly caused by the loss in the parity. If the parity had remained the same, our exports would have been the same as the 2014 figures,” Büyükekşi said. 

Exports to EU rose on quantity, euro basis

He noted that country’s exports to the EU actually rose by 6.9 percent in July and 7.2 percent in the first seven months of the year on a euro basis. 

“On a kilogram basis, Turkey’s exports to the bloc rose by 7.4 percent and 1.4 percent in the first seven months of the year compared to the previous year. Although our exports seem to decrease mainly due to overvaluation of dollar, they are actually better both on quantity and euro basis. We expect exports will improve on value basis as well by September,” he said, addressing the general expectation in global markets about the end of dollar overvaluation. 

He said the economic developments must top the agenda again in Turkey, as was the case in the past. 

“We believe Turkey needs a new success story by keeping its export-based growth and production policy intact. Turkey needs to increase its annual growth rate to 5 percent and above by supporting the manufacturing sector more and focusing on finding new export markets. This is possible through more investments in research and development, brand development and digital transformation,” Büyükekşi said. 

The highest volume of exports was made to Germany, Britain, Iraq, the United States and Italy in July. The volume of exports to Iraq started to increase again, after a 13-month of plunge, in July, according to TİM data. Exports to Germany, however, decreased by 17.9 percent, to Britain by 10.2 percent and to Italy by 2 percent. Meanwhile, exports to the U.S. increased by 15.8 percent. 

Among 30 largest export markets, the highest increase in export volume was seen in the exports to Syria with a 28.6 percent, Egypt with 18.4 percent and the U.A.E. with 16.4 percent, according to TİM data. 
Büyükekşi said the exporters find the recent bailout developments in Greece and nuclear deal talks in Iran positive. 

“Our members also believe that any deal between Turkey and China on doing bilateral trade in their own currencies will yield very positive results,” he said.