Türkiye Achieves its Highest July Exports with $22.5 Billion
The seven-month export from January to July reached $148.8 billion, while the 12-month export reached $261.5 billion. Compared to the same period last year, seven-month exports increased by 4.1%, and the last 12-month exports rose by 3.4%.
The automotive sector retained its top position with $3.1 billion in exports. It was followed by chemicals at $2.6 billion and ready-made garments and apparel at $1.7 billion.
Türkiye Exporters Assembly (TİM) Chairman Mustafa Gültepe: Although we are in the positive territory for the seven-month period, things are not proceeding as desired. I believe steps will be taken to provide relief to our exporters before we fall further behind.
Türkiye's July exports amounted to $22.5 billion. The seven-month export from January to July reached $148.8 billion, while the 12-month export reached $261.5 billion.
The July foreign trade data was announced in Kayseri by Trade Minister Ömer Bolat and Türkiye Exporters Assembly (TİM) Chairman Mustafa Gültepe.
TİM Chairman Mustafa Gültepe highlighted the fluctuating trend in exports since the beginning of the year. Noting that exports fell by 10.6% in June but achieved double-digit growth in July due to the calendar effect, Gültepe continued:
EXPORTS INCREASED IN 20 SECTORS IN JULY
“According to the General Trade System (GTS) records, our exports in July rose by 13.8% compared to the same month last year, reaching $22.5 billion. The seven-month export from January to July reached $148.8 billion, and the 12-month export reached $261.5 billion. We are up by 4.1% in seven-month exports and 3.4% in 12-month exports. According to the study by our Service Exporters Association, we anticipate that our service exports will be around $10 billion in July. Looking at specific sectors, automotive ranks first with $3.1 billion. It is followed by chemicals at $2.6 billion, ready-made garments at $1.7 billion, and steel and electrical-electronics sectors at $1.4 billion. Last month, 20 of our sectors increased their exports, while 6 sectors posted declines. Jewelry was the sector with the highest percentage increase in exports at 91%. We recorded export increases of 72% in hazelnuts, 24% in steel, 23% in mining, and 22.8% in carpets. Among the sectors with declining exports, the ship and yacht sector ranked first with a 42% decrease. According to TİM data based on the legal headquarters of companies, 60 of our provinces increased their exports last month. The top five exporting provinces were Istanbul, Kocaeli, Bursa, Ankara, and Izmir. Sakarya, Çorum, Giresun, and Düzce achieved their highest historical exports. A total of 1,173 of our companies exported for the first time, contributing $98.3 million to our exports. Our unit export value was $1.49, with a parity-related loss of $201 million.”
57% OF TOTAL EXPORTS IN JULY WERE TO EUROPE
Mustafa Gültepe reported that the top export destinations were Germany, the United Kingdom, the USA, Iraq, and Italy. Noting that they achieved the highest monthly exports of all time to 10 countries, including the United Kingdom, Poland, and Kazakhstan, Gültepe said, “We increased our exports to 137 countries. Looking at country groups, the European Union ranks first again with $9.1 billion. The share of the European continent in our total exports was 57%.”
THE IMBALANCE BETWEEN COSTS AND THE EXCHANGE RATE IS PUTTING EXPORTERS OUT OF THE GAME
Evaluating the seven-month performance in exports, Mustafa Gültepe recalled that they started 2024 with a target of a 5% increase. He stated that exports increased in five months and decreased in two months in the past seven months, adding:
“Considering that we exceeded the 5% increase only in three months, we can say that we are behind our desired target. I must underline that we have reached this level with the great sacrifices of our exporters. I reiterate at every opportunity. Production costs in Türkiye are very high. We are 40-50% more expensive in dollar terms than our Asian competitors. We are also 15-20% more expensive than some countries in Europe. Türkiye is no longer just expensive; it is very expensive. We cannot set prices in many sectors, thus losing competitiveness day by day. Our companies are forced to take orders at cost, or even at a loss, to keep the wheels turning and not lose customers. This is, of course, not sustainable. In the short term, there seems to be no solution for exporters other than balancing input costs with the exchange rate. I want to emphasize one point. We have never had a demand for an increase in the exchange rate. However, our production costs have increased by at least 100% annually. In some sectors, cost increases exceed 120%. In the same period, the increase in the dollar was only about 23%. As long as this imbalance between input costs and the exchange rate continues, exporters will be out of the game.”
I BELIEVE STEPS WILL BE TAKEN TO PROVIDE RELIEF TO OUR EXPORTERS
Stating that they are aware that the economic administration is waging a great struggle against inflation, Gültepe reminded that the domestic market inevitably contracts during disinflation processes. Emphasizing the need to increase the pace of exports to keep the wheels turning, protect employment, and ensure economic growth, Gültepe said, “We should not forget that a slowdown in exports will also have negative repercussions on production and employment. Although we are in the positive territory for the seven-month period, things are not proceeding as desired. I believe steps will be taken to provide relief to our exporters before we fall further behind”.