Turkey’s exports drops 4.9 percent in August

Turkey’s exports drops 4.9 percent in August

Turkey’s exports drops 4.9 percent in August

CİHAN photo

Turkey’s exports decreased by 4.9 percent to $10.48 billion in August year-on-year largely due to fluctuations in parity and geopolitical risks, the Exporters’ Assembly of Turkey (TİM) announced on Sept. 1. 

Exports decreased by 8.9 percent to $95.14 billion in the first eight months of the year, according to TİM data. Twelve-month exports also dropped to $147.9 billion, representing a 5.7 percent decrease. 

The largest exports were made by the ready-made clothing and confection sector with a 14 percent of share in total exports in August, followed by the automotive sector at 13 percent and the chemical materials sector at 11.4 percent. 

“Despite a slight recovery in recent weeks, euro-dollar parity regressed by 18.3 percent in the first eight months of the year compared to the same period of 2014. This regression cost $8.9 billion to our exports,”

TİM President Mehmet Büyükekşi said in a press meeting to release the figures in the Black Sea province of Düzce’s Akçakoca district, according to a follow-up press release. 

Büyükekşi said global markets have been shaken ahead of an expected rate hike decision by the U.S. Federal Reserve (Fed) and the slowdown in the Chinese economy. 

“Around 5-6 percent in shrinkage is expected in global trade this year. We saw a contraction of 10.6 percent in the goods trade in the first half of the year. With the Fed’s rate hike expectations, new global conditions have been defined. A more valuable dollar, cheaper commodity prices and rate hikes will constitute the new dynamics,” he said, noting the importance of finding new markets for Turkish exporters in the new era. 

He said exporter associations have already started to take steps to enter the Iranian market, which offers many opportunities with its population in 82 million, following the prospective end to sanctions over the country’s nuclear program.

“We’ll also conduct trade delegation visits to new potential markets, such as the Philippines, Nigeria, Botswana and Namibia,” he said.