In May, Türkiye Broke All-Time Export Records With $24.1 Billion

In the ranking of sectors with the highest exports, the automotive sector took first place with $3.2 billion, chemicals followed with $3 billion, and ready-to-wear and apparel came in third with $1.6 billion.

TİM Chairman Mustafa Gültepe stated, “In the first quarter of Türkiye's economic growth, net exports contributed 1.6 points and exports 0.9 points. If the factors weakening our competitiveness are eliminated, the contribution of exports to growth will continue to increase.”

Türkiye set an all-time monthly export record in May with $24.1 billion. The five-month export total for January-May reached $106.9 billion.

The May foreign trade data was announced in Istanbul by Minister of Trade Ömer Bolat and Türkiye Exporters' Assembly (TİM) Chairman Mustafa Gültepe.

TİM Chairman Gültepe expressed that the surge in May exports, after generally stable trends in the first four months, was a great morale boost. Highlighting the significance of this achievement despite ongoing contraction in labor-intensive sectors, Gültepe continued: 

“According to the General Trade System (GTS) records, we broke the all-time monthly export record in May with $24.1 billion, an 11.4% increase compared to the same month last year. Our five-month export for January-May increased by 4.5% to $106.9 billion. According to our Service Exporters' Association, we estimate service exports in May to be around $9 billion.

EXPORTS INCREASED IN 20 SECTORS IN MAY.

Sector-wise, automotive ranked first with $3.2 billion, followed by chemicals with $3 billion, ready-to-wear with $1.6 billion, electrical-electronics with $1.5 billion, and steel with $1.466 billion. Our machinery and defense and aviation sectors achieved their highest monthly exports in history. While 20 sectors increased their exports last month, 6 sectors saw a decline. The sectors with the highest proportional export increases were hazelnuts and products with 65%, defense and aviation with 59%, jewelry with 25%, chemicals with 24%, and fruit and vegetable products with 18%. Unfortunately, labor-intensive sectors with weakened competitiveness ended May in the negative. For example, despite global demand growth, the ready-to-wear sector did not achieve a positive outcome this month. Cement, glass, ceramics, and soil products exports fell by 5.7%, leather by 8.3%, and tobacco by 18%. According to TİM data based on companies' legal headquarters, 55 of our provinces increased their exports last month. The top five exporting provinces were Istanbul, Kocaeli, Bursa, Ankara, and Izmir. Ankara, Sakarya, Konya, Tekirdağ, Eskişehir, Giresun, Erzurum, and Bartın achieved their highest exports in history.”

A LOSS OF $77 MILLION IN EXPORTS DUE TO PARITY.

Mustafa Gültepe reported that 1,334 companies exported for the first time last month. These companies contributed $109 million to exports. Gültepe stated, “Our per kilogram unit export value was $1.43. Parity negatively affected our exports last month, causing a loss of $77 million in May”.

Gültepe explained that the highest exports were to Germany, the USA, the United Kingdom, Iraq, and Italy, and continued:  

“We saw significant increases in exports to the United Arab Emirates, the Netherlands, Pakistan, and Saudi Arabia. This month, we recorded over 10% export growth in 103 countries and over 50% in 61 countries. In the general picture, we increased our exports to 131 countries. We set export records to the Netherlands, Pakistan, Singapore, Slovakia, and Mongolia. Among the top exporting country groups, the European Union ranked first with $9.9 billion, followed by the Near and Middle East with $4 billion, Other Europe with $3.7 billion, Central Asia and the Far East with $2.2 billion, and North America with $1.6 billion. The European continent's share of our total exports was 57%. As the data shows, the European Union is our largest market. Last week, we inaugurated the TİM Brussels Office with our Minister of Trade. We believe our Brussels Office will play a significant role in developing and deepening trade relations with the European Union. Our delegation programs continue unabated. In five months, we organized 63 trade and 9 procurement delegations to 40 countries.”

PPI INCREASED BY 6% IN THE LAST TWO MONTHS WHILE THE DOLLAR EXCHANGE RATE FELL BY 1%.

Evaluating current issues related to exports, Mustafa Gültepe emphasized that labor-intensive sectors are struggling to set prices due to high costs. Gültepe concluded his remarks as follows:

“While our production costs continue to rise, the exchange rate is not increasing but depreciating. For example, in the last two months, producer prices increased by approximately 6%, while the dollar exchange rate fell by 1%. Moreover, our exporting companies still face difficulties accessing cheap and long-term credit. We are sharing our views, suggestions, and demands on these two issues with our ministries and relevant institutions. I hope that the problems weakening our competitiveness and slowing our exports will be resolved without further delay. In the first quarter of Türkiye's economic growth, net exports contributed 1.6 points and exports 0.9 points. If the factors weakening our competitiveness are eliminated, the contribution of exports to growth will continue to increase.”