April Exports at USD 19.3 Billion

April Exports Reach USD 19.3 Billion Turkey achieved USD 19.3 billion in exports during April. Exports for the first four months reached USD 80.9 billion, while exports for the last 12 months stood at USD 251.7 billion. Mustafa Gültepe, President of the Turkish Exporters Council (TİM), stated that April was a month in which the negative impacts of global and domestic developments were felt on exports. Gültepe continued: "According to General Trade System (GTS) records, we completed April with USD 19.3 billion in exports. We are down 17.2 percent compared to the same month last year. Our 12-month export reached USD 251.7 billion with a 4.9 percent increase, while we closed the January-April period at USD 80.9 billion with a 3 percent loss. Last month, the automotive sector provided the highest contribution to our exports at USD 2.7 billion. The other sectors in the top five ranked as follows: chemicals with USD 2.4 billion, ready-made clothing with USD 1.5 billion, electrical and electronics with USD 1.2 billion, and steel with USD 1.1 billion. We recorded increases last month in cereals, olives and olive oil, defense and aerospace, fresh fruits and vegetables, tobacco and hazelnuts exports. Fourteen provinces increased their exports. The top five provinces by export volume were Istanbul, Kocaeli, Bursa, Izmir and Ankara. Last month, 1,449 companies joined our export family. Our unit export value rose to USD 1.56 with an 18.3 percent increase compared to the same month last year."  

Exchange Rate Provides Positive Impact on Exports for the First Time in Months

Gültepe noted that exports were made to 217 countries in April and emphasized that increases in exports to 81 countries were recorded. Gültepe pointed out that Turkey's leading export destinations were Germany, the United States, Iraq, Italy and the United Kingdom, and underlined that remarkable increases were recorded in exports to Saudi Arabia and Kazakhstan. Noting that exchange rate movements had a positive impact on exports for the first time after a long period, Gültepe stated: "In April, the exchange rate effect provided a positive value of USD 152 million. However, since the beginning of the year, we have suffered a loss of USD 972 million due to the exchange rate effect."  

Cost Increases Outpace Currency Gains, Market Share Losses Begin

Explaining that Turkey is going through a period in which national and international developments have negative repercussions on exports, Gültepe recalled that demand stagnation continues due to monetary tightening policies in global markets such as Europe and the United States. Emphasizing that cost increases are negatively affecting competitiveness in global markets, Gültepe stated: "Cost increases have far outpaced the currency increase. For this reason, we have begun to lose our competitiveness. Our customers have started to shift their purchases to rival countries both because we cannot maintain our prices and due to the impact of declining logistics costs. As we always say, the currency needs to increase at least as much as inflation so that Turkish exporters can maintain their competitiveness. Otherwise, we will continue to lose market share. Winning back the customers we have lost can take years." TİM President Mustafa Gültepe continued: "The reductions made in electricity and natural gas prices since the beginning of the year have eased the burden on our exporters, particularly in sectors with high energy consumption, in reducing costs. In the provinces affected by the earthquake that occurred in Kahramanmaraş three months ago, recovery continues at a rapid pace. As the umbrella organization of the export family, we are trying to match our companies with the right buyers through trade and purchasing delegations as well as trade fairs. Therefore, we believe that the decline in our exports seen in April is short-term and temporary. Despite everything, I am confident that by making the best use of the remaining eight months, we will complete 2023, in which we celebrate the 100th anniversary of our Republic, with the best possible export performance."