Turkish exports increased by 6.6 percent in June, reaching $12.54 billion despite a cut in growth rates across the world, according to data released by Mehmet Büyükekşi, the head of the Turkey Exporters Assembly.
Mehmet Büyükekşi, president of the Turkey Exporters Assembly (TİM), announced the figures of Turkey's total exports in June. According to data from the TİM, Turkey's exports increased by 6.6 percent in June reaching $12.54 billion (TL 26.68 billion).
Speaking in Kırıkkale, a province neighboring capital city Ankara, Büyükekşi commented on current economic and politic issues. "The U.S. growth forecast was decreased from 2.9 to 2.1-2.3 percent by the Fed. The Fed also decreased the monthly bond purchase volume from $45 billion to $35 billion," noted Büyükekşi. He also noted that TİM experts expect that total imports will increase in the near future with positive contributions from domestic demand and the monetary easing policy of the European Central Bank.
In the first quarter of 2014, Büyükekşi noted that Turkey grew 4.3 percent exceeding the entire international forecast. He added that "With this growth rate, Turkey ranked fourth in the emerging economies list. Turkey also ranked third in Europe after Czech Republic and Poland when the increase in the export rates were compared.
Growth based on export steered us up in the list." Büyükekşi stated a 25 percent decrease in foreign trade deficit showed macroeconomic policies were well-directed. Büyükekşi described the interest rate cut of the Central Bank as "limited." "Last week, the Central Bank pulled the lending rate to 8.75 percent with a decrease of 0.75 points. We want the Central Bank to continue to make gradual interest rate cuts proactively without falling behind the market dynamics. High interest rates affect the investments of all the companies from different sectors in a negative way. We believe that competitive exchange rate levels should be protected with continuous interest rate cuts," remarked Büyükekşi.
He also added "Imports of EU-23 countries decreased by 2 percent and 13 billion euros became narrowed in the first four months of 2014. In the same period, we increased our exports to EU countries by 14 percent. Exporting to a market where demand is shrinking creates a price pressure, which requires exchange rates to stay on a certain level." Büyükekşi, also commented on the latest developments in Iraq. "We are deeply sorry for the 80 Turkish citizens captured in Mosul.
Besides, Turkey's exports to Iraq have drastically declined after the gunfight started in the country. Now, Turkish companies can only reach the Iraqi market via a route passing through Kirkuk," Büyüekşi remarked.
Highlighting that Iraq used to rank as the second country that Turkey exports most to, churning out $12 billion annually, Büyükekşi said Turkey's exports to Iraq decreased by 21 percent in June. "Turkish exporters will recover their losses stemmed from unrest in the Middle East with increasing exports to other markets like lately-recovering European countries," he noted.
In June, Turkey's total exports increased by 6.6 percent, reaching $12.54 billion, while total exports in the last six months were $80 billion with an increase of 7.3 percent. According to the data released by TİM, the annualized total exports figure reached $156.6 billion with an increase by 2.6 percent.
TİM's data says the automotive sector made the largest exports in June with $2 billion in total revenue. The garment industry's ranked second with total exports equaling $1.6 billion, while the chemical productions sector's exports reached $1.52 billion, ranking third.
The top five countries that Turkey exports most to included Germany, England, Iraq, France and Italy. In June, Turkey's exports to Germany (10 percent), England (22 percent), France (12 percent), Italy (18 percent) increased, while exports to Iraq decreased by 21 percent in the same period.
Turkey's exports to Umman, Qatar, Crotia, Syria and South Korea increased respectively by 181, 154, 108, 94 and 64 percent in June. Turkey's total exports to EU countries increased by 15 percent, North America increased by 12 percent and the Middle East increased by 2 percent.