Exports Start New Normal With Record

Turkish Exporters Assembly (TİM) announced the export figures for June. Türkiye's export increased by 15.8 percent in June 2020 to 13 billion 469 million dollars. Compared to May, 35.2 percent achieved a record rate of increase in exports. In June, 1.443 companies joined the export family, while 24 of the 27 sectors increased in exports. Hazelnut and Products, Grain, Jewelry, Ship and Yacht, Ornamental Plants sectors increased their exports by more than 50 percent monthly, while the top 5 sectors that exported the most were Automotive, Chemical Substances, Apparel, Steel and Electrical-Electronics.

TİM Chairman İsmail Gülle, “The export family, during the epidemic period 'Türkiye First, Exports First' by saying that Türkiye's dynamo continued to be. Türkiye has begun its course beyond normal in exports by registering that it is the 'reliable port' of global trade. Just as our country has managed to increase exports many times despite negative developments in world trade and financial attacks on Türkiye, it has succeeded again today. We are aware of the extraordinary opportunities of extraordinary circumstances. We trust our exporters.  When it comes to Türkiye, we did it yesterday, we do it today, and we will do it tomorrow,” he said.

Turkish Exporters Assembly (TİM) announced temporary foreign trade data for June. According to the General Trade System (GTS), exports increased by 15.8 percent year-on-year to $13 billion 469 million dollars in June. The rate increase compared to May broke a record with 35.2 percent. Exports in the last 12 months also fell by 15.1 percent to 75 billion 55 million dollars.

Assessing the effects of the outbreak on the world economy, TİM Chairman İsmail Gülle said, "International organizations continue to revise their expectations about the effects of the outbreak on the global economy in a negative way. The IMF revised its forecast for a global economic contraction of 3 percent to 4.9 percent for 2020 and Fitch from 3.9 percent to 4.6 percent, while the World Bank predicts the economy will shrink by 5.2 percent this year. Many countries' economies, which are among our target markets, are also expected to face significant downsizing by 2020. The IMF estimates that Mexico will shrink by 10.5 percent this year, the United Kingdom by 10.2 percent, South Africa by 8 percent and Russia by 6.6 percent. Purchasing Managers' Index (PMI) data indicates that the contraction in global economic activity has decelerated.  In June, manufacturing and services PMI data in China rose above the threshold level described as 50; The PMI index in the Euro zone rose more than 40 percent to 46.9, according to May. Our biggest hope is that the recovery in the global economy and especially in our country's economy will happen rapidly."

“Exporters succeeded what is said cannot be accomplished”

Gülle stated that the outbreak negatively affected Türkiye's production and exports in March-April-May as it has been the case all over the world, and said: "The export family continued to be the dynamo of Türkiye, which produces by saying 'Türkiye First, Exports First' during the epidemic period. I congratulate all exporters wholeheartedly for their outstanding struggle during this extraordinary period. In our country, we left behind the first month of normalization process starting in June.

Türkiye has begun its course beyond normal in exports by registering that it is the 'reliable port' of global trade. Just as our country has managed to increase its export many times despite negative developments in world trade and financial attacks on Türkiye, it has succeeded again today. We are aware of the extraordinary opportunities of extraordinary circumstances. We trust our exporters.  Because they have done what is called cannot be done, and they succeeded what is said cannot be accomplished. When it comes to Türkiye, we did it yesterday, we do it today and we will do it also tomorrow."

“June's exports reflected a great effort”

For companies to overcome the shock of demand caused by the outbreak with minimal damage, Gülle said that they attach great importance to increasing the volume of credit for exporters and facilitating exporters' access to financing, "We have seen the positive contribution of the June export data of public banks and private banks, especially Eximbank, to exporters. In this context, we have signed a protocol with The Is Bank of Türkiye, the first national bank of the Republic of Türkiye, which we believe will further strengthen the hands of our exporters in global trade. This cooperation is of great importance in terms of offering low-interest loans to exporters, applying positive discrimination against female exporters, and covering a volume of as high as $500 million.

I would like to point out that the 53 requests that emerged during the epidemic process and which we have expressed as TIM have been resolved at jet speed with the dedication of the Ministry of Treasury and Finance and the Ministry of Commerce. Our June export figures reflect this great effort. On behalf of the entire export family, for the hard work they have put forward during such a difficult period, we would like to express our sincere gratitude to our esteemed ministers again in the presence of our President. I hope that the positive reflections of the serial steps taken during this period will see more both the new normality and the process after that."

“Next Generation Trade Diplomacy activities will continue non-stop”

Stating that the struggle has just begun for exporters, Gülle said that as TİM, they continue to evaluate all opportunities and risks for exporters one by one. Gülle gave the following information about the work carried out in June within the framework of TİM's action plan for the future of Türkiye and exports: "In June, we organized a new one of the Virtual Trade Delegations that we carried out under the coordination of our Ministry of Commerce within the framework of our next Generation Trade Diplomacy activities. The third of our Virtual Trade Delegations was on 15th-25th of June; We have carried out it in India to cover agriculture, food and non-food rapid consumption products, agricultural machinery, cold storage, and air conditioning sectors.

At the point of ensuring intensive trade cooperation, the Virtual Trade Delegations, which we have identified as the second phase of the joint fight against the global virus pandemic, are of great importance. Our Virtual Trade Delegations will not be limited to Uzbekistan, Kenya, and India. As TİM, with 95 thousand members of the export family, we will continue our next generation trade diplomacy activities in target markets.

“In June, 1.443 companies joined the export family”

Referring to the details about June exports, TİM Chairman Gülle gave the following information: "Awareness of our riveted exports, which is an indispensable pillar of the present and the future of the Turkish economy, and as TIM, as a clear result of our SME export Mobilization trainings carried out in every part of our country; I am pleased to inform you that 1,443 of our companies have joined our export family in June. These companies, which have just started exporting, exported 101 million 384 thousand dollars in June. A total of 38,373 of our companies have exported in June on a company basis."

Exports to 144 countries increased by $2.43 billion

Despite the negative picture of global trade, Türkiye managed to increase its exports to 144 countries by $2.43 billion in June. Of these 144 countries, 119 increased by 10 percent and 61 increased by over the 50 percent. Among these countries, the United Kingdom increased by $304 million compared to June last year, with an increase of $272 million in exports, and Israel drew attention with an increase of $162 million in exports.

Automotive leadership continued

The leader of June was the Automotive sector with 2 billion 16 million dollars in exports, the Chemical Materials sector with 1 billion 425 million dollars was second, the Garment sector with 1 billion 358 million dollars was third, the steel sector with 1 billion 129 million dollars was fourth and the Electricity and Electronics sector was were fifth with 903 million dollars. Those who achieved the strongest performance in June, 69.3 percent increase to 128.4 million dollars in exports reached Hazelnut Products, 66 percent increase to reach 572.4 million dollars, Grain, 60.2 percent increase to reach $345.1 million Jewelry, 58.8 percent increase to reach 88 million dollars, the Ornamental Plants sector reached $6 million with an increase of 55.2 percent.

The table of sectors has been reversed

In June, the poor picture was left behind when looking at the export performance of the sectors. In May, 25 of the 27 sectors experienced a decline in exports, while 24 of the 27 sectors increased in June.

“Most exports to Germany”

In June, exporters managed to wave our country's flag in 202 countries and regions. The top 3 most exported countries were Germany with 1 billion 293 million dollars, the United Kingdom with 1 billion 13 million dollars and the United States with 792 million dollars. The share of exports in the top 10 countries was 49.4 percent, while in the top 20 countries, this share rose to 67 percent.  Each sector has managed to export to 17 countries, including the United States, Germany, Italy, and the Netherlands. The share of exports to the European Union, the largest market, fell to 48.5 percent with a volume of $6.53 billion.

The most remarkable increase was seen in Kastamonu City

When we look at the exports of provinces; in June, 68 provinces increased their exports. The top 3 most exporting provinces are the most exported, respectively; İstanbul with 5 billion 404 million dollars, Bursa with 931 million dollars and Kocaeli with 865 million dollars. The most remarkable increases are in Kastamonu, which exported $54 million with an increase of 631 percent, Van reaches $6 million with an increase of 293 percent, and Kırıkkale, which exported $1.5 million with an increase of 208 percent. Kastamonu Apparel sector increased its exports 11-fold, while in Van mining sector exports increased 161 times. In Kırıkkale, the Machinery sector increased its exports by 44 percent.

Exports were made to 174 countries with 4.2 billion Turkish Lira

During the month, exports to 174 countries amounted to 4 billion 219 million Turkish Lira. 6.416 companies preferred Turkish Lira in export transactions.

The negative impact of the parity was $31.7 million

Exports on a quantity basis were 12.5 million tons in June, an increase of 28.3 percent compared to the same month last year. Finally, the negative effect of Euro / Dollar parity in June was $31 million 771 thousand dollars.