Clinging More Firmly to Exports in Challenging Times

I wish that the blessed month of Ramadan, whose spiritual climate we are experiencing, brings peace and abundance to our country and to the entire Islamic world. Unfortunately, during these sacred days, tensions in our region have once again escalated. With the attacks by the United States and Israel on Iran, the Middle East has turned into a ring of fire.

We have recently witnessed in Syria and Gaza that the heaviest toll of wars and conflicts is borne by civilians, particularly women and children. For this reason, our greatest hope is that common sense will prevail and that a return to the ground of reconciliation will be achieved without delay, because regional tensions, beyond the humanitarian tragedies they cause, directly affect the fundamental dynamics of trade, from energy to logistics.

Our February export data once again demonstrated how delicately balanced our operations remain under the pressure of global conditions. Last month we realized exports totaling 21 billion 65 million dollars, marking a 1.6 percent increase compared to the same month of the previous year. In February, 14 of our sectors increased their exports, while 12 sectors concluded the month in negative territory.

The point we must emphasize here is the following: for the past one and a half years, there has been no significant contraction on the demand side; on the contrary, demand within the European Union (EU) has begun to recover, and we are also observing signs of growth in the United States. However, due to high costs, we are unable to achieve competitive pricing, and consequently our share in these markets is declining, while our competitors are filling the gap that emerges in our absence. The reduction in purchases from Türkiye at a time when demand is rising conveys a very clear message to us: the problem lies largely in price competitiveness. In other words, the overall picture is predominantly shaped by Türkiye remaining comparatively expensive.

The erosion of competitiveness and the narrowing of profit margins are rendering exports less attractive. We can also observe this situation in the steadily declining number of companies exporting for the first time. For instance, in February the number of firms exporting for the first time remained at 950, and these companies contributed 65 million dollars to our exports. The contribution of our new companies carries great significance for us; however, this share is gradually diminishing. Looking at the past year, we see that February became the fourth month in which we received the lowest contribution from new firms.

In terms of unit export value, however, there is a positive development. Our unit export value, which increased by 13 percent in February, reached 1.7 dollars, the second-highest figure of the last five years. The parity effect also contributed 1.2 billion dollars to our exports; had parity not provided this support, we would have closed February with an approximate decline of 4 percent.

We consistently emphasize at every opportunity that healthy and sustainable growth can only be achieved through production and exports. Nevertheless, in 2025 net exports made no contribution to growth; on the contrary, they exerted a downward pull. The fact that net exports failed to contribute to growth in any quarter of 2025 requires careful and thorough analysis.

In order to reverse this picture and strengthen the contribution of exports to growth, as the Türkiye Exporters' Assembly and the exporters' associations we continue to carry out our work resolutely in the field and in target markets in line with our objectives. In February we completed delegations in 17 countries, including the United States, Azerbaijan, Romania, Morocco, Spain, and the Philippines. This month we will organize sectoral and general trade delegations in Russia, Spain, Greece, the United Kingdom, Kazakhstan, the United States, Ghana, and Egypt.

We are fully aware of the challenges. Nevertheless, I firmly believe that with our production strength, the determination of our exporters, and our resolute commitment to expanding into new markets, we will overcome this period as well.