It is Imperative to Alleviate the Burden Weighing upon Industry

We concluded August with an export volume of 21.8 billion dollars, registering a 0.9 percent decline compared to the same month of the previous year. Our exports for the January–August period amounted to 178.1 billion dollars, while exports over the past 12 months reached 269.2 billion dollars. Thus, we recorded a 4.3 percent increase in eight-month exports and a 2.8 percent rise in annualized exports.

Although the reversal into negative territory in August, following the double-digit export growth in July, is not the outcome we desired, it did not come as a surprise. The recent increase in exports has largely stemmed from the contributions of certain companies in sectors such as automotive, chemicals, and defense industries. While no more than 20 percent of our companies have been able to increase their exports, 80 percent are experiencing a contraction. In other words, the challenge of broadening the export base persists.

In August, exports in 15 of our 26 sectors declined, while only 11 showed growth. Despite the robust performance of some sectors, the overall increase falls short of our expectations. This clearly demonstrates the extent to which our competitiveness challenges have deepened.

Our industrialists are struggling as input costs rise far above exchange rate increases. The shift of orders to more cost-competitive countries, coupled with firms operating over the past two years with interest rates of 45–50 percent, has eroded production capacity. Business closures, the surge in concordat declarations, and employment losses are the most tangible indicators of this pressure. We no longer have time to lose. There is an urgent need for new and differentiated policies prioritizing production and exports. The heavy burden inflation has placed upon industry must be lightened, for breathing space on the production front is becoming increasingly scarce.

Therefore, the Central Bank must act far more decisively in reducing interest rates. While annual inflation has receded to 32 percent, the policy rate remains at 43 percent. This 11-point gap must be narrowed swiftly.

Despite all challenges, we exporters are not losing our motivation. We remain present on the ground, observing problems firsthand and voicing our proposals for solutions on every platform, from our esteemed Vice President to the relevant ministers. We hope the new Medium-Term Program (OVP) will encompass policies prioritizing production and exports.

We also continue our trade delegation programs without interruption. Together with our Minister of Trade, Mr. Ömer Bolat, we participated in the Türkiye-Syria Trade Delegation program organized in Damascus, the capital of Syria. This visit represented an important step, both in consolidating the increase in our exports and in shaping the commercial collaborations of the new era between the two countries. Moreover, in August we organized trade delegations to Australia and Nigeria. In September, we shall open new doors for our business community in Mexico, Kuwait, Germany, and the Philippines. Through these delegations, while targeting distant markets, we will continue to support our companies in accessing new opportunities.

Let us not forget that the future of Türkiye will be shaped, and our medium- and long-term objectives achieved, by our more than 150,000 exporters. By 2028, we shall reach our target of 375 billion dollars in goods exports and 200 billion dollars in services exports with these very companies. The stronger we render our exports, the stronger and more influential our nation shall be in the world.