We Must Concentrate on Our Targets in The Upcoming Four-Year Period Without Any Elections
The "what if expectation" about the Turkish economy that began before last year's general elections ended with the local elections held on March 31. Türkiye has completed yet another election with remarkable democratic maturity. First and foremost, I wish for the outcome to be beneficial for our country and our nation. We believe that the message from the ballot box will be interpreted optimally, leading to actions that strengthen our economy. The economic administration has reiterated its commitment to economic policies even after the election. We now have a long four-year period without elections ahead of us. I am confident that this period will be utilized to its fullest for the benefit of our country's economy and our exports, enabling us to achieve and surpass our goal of $375 billion in goods exports and $200 billion in service exports by 2028.
Exports play a pivotal role in the Turkish economy. Therefore, it is imperative that the economic policies in place support exports and do not marginalize exporters. While we made a promising start in the first two months of the new year, our March exports serve as a cautionary tale. Our exports in March declined by 4.1% to $22.6 billion. Despite this setback, we closed the first quarter with a 3.6% increase compared to the same period last year. Although we have seen growth in exports amidst ongoing global trade wars and inflationary pressures, we believe it falls short of our expectations. This is because we have set a growth target of around 10% for this year.
The figures indicate a surplus in exports. However, many of our exporting companies have experienced a significant increase in input costs while their turnover has remained stagnant. This indicates that companies are facing financial constraints. In our individual meetings with all sectors, we have observed that finance is the primary concern for each sector.
In an inflationary environment, it is crucial to meet the long-term, low-interest financing needs of our exporters and ensure price stability to prevent them from being marginalized. Against the backdrop of Asia, where we face challenges in price-based competition, we can gain an advantage with our quality and sustainable production. This can be achieved through new investments.
Exporters are not seeking a high exchange rate but rather aim to avoid the compounding effects of a low exchange rate policy. Input costs, particularly labor, have approached the level of turnover. The average total labor cost for both blue-collar and white-collar workers stands at $1,200. The exchange rate not only impacts exporters but also influences the investment decisions of foreign companies. Despite Türkiye's advantages in terms of geographical proximity, infrastructure, and transportation to key markets, it is at a disadvantage in terms of production costs such as initial investment and labor. Consequently, many companies, including Turkish investors, are opting for more attractive countries like Egypt.
We have recently made significant strides in the Americas and Gulf countries. In the EU, our largest market, we must expedite efforts to meet their green infrastructure requirements to sustain our presence in the medium and long term.
Therefore, over the next four years, we must prioritize value-added exports and take steps to enhance our competitiveness. If our expectations are met, we can achieve our 2028 goals with greater ease and reinforce our vision of positioning Türkiye among the top 10 exporting countries.
In conclusion, I extend my best wishes for a joyous Eid and hope it brings peace and prosperity to our country, nation, and all of humanity.