Turkey’s exports drop 14.4 pct in first month of 2016

Turkey’s exports drop 14.4 pct in first month of 2016

Turkey’s exports drop 14.4 pct in first month of 2016

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Turkey’s exports declined 14.4 percent to $9.2 billion in January compared to the same month of 2015, according to data from the Exporters’ Assembly of Turkey (TİM). 

The loss in the country’s exports from parity was announced at $371 million in January. The 12-month exports declined by 9.8 percent to $140.6 billion in the first month of 2016 compared to the same month of 2015, said TİM in a written statement on Feb. 1. 
TİM President Mehmet Büyükekşi said Turkish exporters have been eyeing opportunities in the Iranian market, adding that a “Turkish Trade Center” will be opened in Tehran to secure an effective voice in Iran. 

Opportunities in the Iranian market 

“The Preferential Trade Agreement, which became effective as of Jan. 1, 2015, and has stipulated the zeroing of 125 customs tariffs every year, will make an additional contribution to exports. The most crucial point here is that foreign companies will be able to enter Central Asian markets along with Turkey with the help of the agreement after the sanctions are lifted. We expect these developments will make around 8-10 percent of positive contribution to Turkey’s exports,” he said. 

Büyükekşi also noted that an impact analysis of the Iranian economy in the post-sanction period has been prepared in cooperation with the Economic Ministry and the Foreign Economic Relations Board (DEİK). Its results will be revealed in March. 

The largest volume of exports was made by the automotive industry in January with around $1.5 billion worth of exports, followed by the ready-made clothing sector and the chemical materials and products sector, according to TİM data. 

Sharp decline in exports to Iraq, Russia

Germany, Britain, Italy, the United States and Iraq became the largest export markets for Turkey in January, although slight decreases in exports were seen in its main markets. Turkey’s exports to Germany declined by 1.5 percent, to Britain by 15.9 percent and to Italy by 2 percent in January compared to the same month of 2015. While the exports to the U.S. dropped by 6.6 percent, the Iraqi market saw a dramatic decline, around 48 percent, in January from the same month of 2015, according to TİM data. While Turkey made exports worth around $313 million to Russia in January 2015, this figure regressed to around $110 million in January of this year.

The largest increase in Turkey’s exports among the top 30 markets was seen in Saudi Arabia with an increase of 30.5 percent, followed by Egypt by 15.1 percent and Israel by 9 percent.