We Must Enhance the Global Competitiveness of Our Firms
With $18.6 billion in goods exports in June, we closed the first half of the year. Compared to the same month last year, our exports contracted by 10.6%. Despite a significant monthly decline, our 6-month exports increased by 2%, and our 12-month exports by 2.5% compared to the previous year.
We generally observe a decline in exports during months with extended holiday periods. The second half of the year will not have long holidays, but other global risks that affect our competitiveness persist. This is evident from the declines experienced by our leading sectors in June. Last month, only six sectors managed to increase their exports, while 20 sectors recorded declines.
Another notable data point in June was the drop in the number of firms exporting for the first time, falling below a thousand for the first time in months. The number of new exporters stood at 906 last month. The primary reason behind this is that producers struggle to compete on price in the global market. Large producers and firms can continue producing and exporting at a loss for a while to maintain market presence, but this is very difficult for our smaller firms. Due to losing competitiveness, our producers' desire to export diminishes, and they turn back to the domestic market.
The decline in the global market competitiveness of our firms could negatively impact our 2028 export target. However, to be stronger in the global market, we need to expand our export family further. Our trade delegations organized to find new markets will continue to increase in the coming period. With the support of our Ministry of Trade, our producers can write new success stories in these new markets.
Although there is a contraction in current markets, the expansion of our export map in recent years shows that we are growing rapidly in new markets.
As TİM, we continue to work to overcome the obstacles faced by both our exporters and prospective exporters. At the meeting with the Minister of Treasury and Finance, Mr. Mehmet Şimşek, with real sector representatives, we conveyed our demands, expectations, and suggestions, including the continuation of the VAT exemption under the Inward Processing Regime (IPR), the carried forward VAT, and the exemption of exporters from the overseas exit fee. I believe our requests will be positively received.
The decision by the Financial Action Task Force (FATF) to remove Türkiye from the Grey List at its general assembly is a turning point for our economy. Following this decision, international banks and institutions have begun to revise their forecasts for the Turkish economy positively. These developments will further increase the confidence of international financial institutions in our country, and Türkiye, with its robust production infrastructure, will be among the top choices for foreign investors.
Within the framework of our 2028 export targets, we need new investments and value-added products, and we highly prioritize every investment, large or small, in this regard.
On the night of July 15, 2016, the noble Turkish Nation once again demonstrated its unwavering belief in democracy and independence. On this occasion, we remember our martyrs with mercy and express our gratitude to our veterans. As exporters, we will continue to work to strengthen our production capabilities, which will reinforce our independence in every sense, and grow our national economy.