The Defense of the Economy Begins on the Factory Floor
The Defense of the Economy Begins on the Factory Floor
May marked a period in which not only export figures but also shifting global dynamics warranted close scrutiny. During the past month, when six working days were lost to national and religious holidays, two significant trends in the global economy became increasingly evident: demand strengthened across the Eurozone and the United States, while capacity utilization rates in China continued to decline. At the same time, capacity utilization in China fell to its lowest levels in the past two years, and upward pressure on producer prices began to emerge, creating a new equation in global competition.
As purchasing activity accelerates in Europe and the United States, the gradual pass-through of rising costs into prices in China may lead to a redirection of a portion of global orders. This shift could open a new window of opportunity for our country. However, to capitalize on this potential, we must first establish a sound synchronization between prices and costs domestically. Producer prices in Türkiye have been rising uninterruptedly for 41 months, and this reality has a direct impact on our competitiveness.
Growth figures also underscore this necessity with remarkable clarity. While the economy expanded by 2.5% in the first quarter of the year, net exports reduced growth by 2.5 percentage points. For the past six consecutive quarters, net exports have exerted a negative contribution to growth. While domestic demand and the services sector continue to support economic expansion, industry contracted by 0.8% in the first quarter, and leading indicators suggest that this trend may persist into the second quarter. Yet, as one of our distinguished academics aptly emphasized, the true line of defense of the economy lies in its factories. We consistently stress on every platform that, for healthy and sustainable development, at least half of economic growth should be generated by export-oriented industrial production.
In May, we achieved exports totaling USD 22.5 billion. Compared to the same period of 2025, this represents a decline of 9.3%. We anticipate recovering this loss in June, as it largely stemmed from six fewer working days due to the holiday calendar. Looking at the broader picture, however, our exports for the first five months reached USD 111.2 billion, while our rolling 12-month exports rose to USD 273.5 billion. Exports increased by 0.3% over the first five months and by 3% over the last 12 months. In short, although monthly figures may fluctuate due to calendar-related effects, it is essential to assess overall performance by examining both the prevailing trend and the complete picture. Once June data are released, we will gain a much clearer view of the first half of the year.
While closely monitoring developments, we continue to maintain our momentum in the field. In May, we organized 16 trade delegations, 3 buyer delegations, participated in 32 trade fairs, and carried out 4 UR-GE activities. In June, we are targeting participation in 34 trade fairs, the organization of 8 sectoral trade delegations, and the implementation of 4 UR-GE activities. On Friday, June 26, we will hold our Champions of Exports Awards Ceremony, during which we will announce Türkiye's Top 1,000 Exporters, alongside the General Assembly of the Türkiye Exporters' Assembly. At this gathering, to be honored by the presence of our President, Mr. Recep Tayyip Erdoğan, we will come together with our export family to celebrate our achievements and discuss the roadmap for the period ahead. As we always say: Our business is production; our strength is exports.