TİM Announces May Export Figures

"Our expectations for exports are beyond normal"

The Turkish Exporters Assembly (TİM) released May export figures. Turkey's exports in May 2020 reached USD 9 billion 964 million. TİM Chairman İsmail Gülle stated, "In the normalization period and beyond, our expectation for exports is 'Beyond normal'. We believe that extraordinary circumstances contain exceptional opportunities. We have undertaken many different initiatives both in terms of managing the pandemic period and foreseeing and evaluating opportunities that will emerge after the pandemic. As the Turkish Exporters Assembly, we will continue working without slowing down for beyond normal in foreign trade. We believe that after the pandemic ends, our exporters will more than compensate for this loss, and with the recognition of Turkey as a 'reliable port' of global commerce, they will continue setting new records from where they left off," he said. The Turkish Exporters Assembly (TİM) released May provisional foreign trade data. In May, exports fell 40.9 percent to USD 9 billion 964 million according to the General Trade System (GTS). Exports over the last 12 months fell 8.4 percent to USD 165 billion 732 million. TİM Chairman İsmail Gülle, noting that many countries faced the most dramatic export declines in recent years due to the pandemic, said, "While Germany's exports experienced their sharpest monthly decline in 30 years in March, Japan's exports recorded their sharpest decline in 11 years in April. Of course, affected by this global shock, our country's exports also faced monthly declines from mid-March compared to the same period of the previous year. Although our country has experienced similar inevitable declines in exports during previous crisis periods, it has always managed to recover losses quickly and reach new export records. Indeed, after the 2001 crisis, our country's exports increased 100 percent within 3 years. Following the 2008-2009 global financial crisis, our exports again increased 50 percent within 3 years. We are leaving behind a period when the pandemic was felt intensely in export markets. In the normalization period and beyond, our expectation for exports is 'Beyond normal'. We believe that after the pandemic ends, our exporters will more than compensate for this loss, and with the recognition of Turkey as a 'reliable port' of global commerce, they will continue setting new records from where they left off," he said.

Turkish exporters passed a successful test

Gülle, stating that there are many lessons to be drawn from the global supply chain disruption to better understand the importance given to domestic and national production during the pandemic, noted: "Our country did not experience any supply chain problems during the pandemic period thanks to the diversity and flexibility of our manufacturing industry in production, but unfortunately many other countries experienced such problems when they needed them most. Our trade culture, which has a structure resilient to shocks, played a major role in our country being among the least affected countries from the global virus pandemic in all respects. During the pandemic, Turkish exporters passed a successful test with the confidence they provided in supply chains and their rapid actions in changing conditions. As TİM, the single-roof organization of Turkish exporters, we not only closely monitored the process. We mobilized all our resources and directly engaged with every export-related problem. To quickly resolve the challenges brought by the new period, we worked with all our units both in the field and virtually without turning off our lights for even a day. We believe extraordinary circumstances contain exceptional opportunities. We have undertaken many different initiatives both in terms of managing the pandemic period and foreseeing and evaluating opportunities that will emerge after the pandemic. As the Turkish Exporters Assembly, we will continue working without slowing down for beyond normal in foreign trade."

Virtual Trade Missions to continue with India and South Korea

Providing information about the action plans carried out by TİM for the future of Turkey and exports in this process, Gülle noted that daily mask production reached 50 million in the 'ProducTİM Mobilization' initiative launched to ensure Turkey experiences no shortages in medical protective equipment, that the direction of trade during and after the Covid-19 process was charted in TİM Export Talks panels organized with the participation of ambassadors, and that specially designed hygiene kits were sent with the #GoodnessFromTürkiye tag to major buyers, trade association representatives, media representatives and opinion leaders in target markets through DHL Express cooperation. Recalling that 49 problems and demands of exporters were addressed in the Economic Stability Shield Package, Gülle said that new demands from exporters were conveyed to Treasury and Finance Minister Berat Albayrak during a TİM Sectors Council meeting. Regarding the "Next Generation Trade Diplomacy" activities being carried out, Gülle provided the following information: "In order to minimize the negative effects of the pandemic on our country's exports and the market losses suffered by exporting companies, with the coordination of our Ministry of Commerce, in this global change and transformation process we are in, mobilizing all opportunities brought by our time, within the scope of our 'Next Generation Trade Diplomacy' activities, we are conducting 'Virtual Trade Missions'. We conducted the first of our virtual missions to Uzbekistan and the second to Kenya. Our Virtual Trade Missions will continue with India on 15-19 June and with South Korea on 22-23 June."

1,117 companies joined the export family in May

Touching on details regarding May exports, TİM Chairman Gülle provided the following information: "As the clearest result of the awareness towards our exports, which has been firmly established as an indispensable pillar for the present and future of Turkey's economy, and the SME export mobilization training we conduct throughout our country as TİM, I am pleased to report that 1,117 companies joined our export family in May. These newly exporting companies conducted USD 83 million 284 thousand in exports in May. Looking at it from an individual company perspective, a total of 32,651 companies conducted exports in May."

Exports to 31 countries increased by USD 129.8 million

Despite the negative global trade picture, Turkey managed to increase exports to 31 countries by USD 129.8 million in May. Among these 31 countries, in 25 the increase exceeded 10 percent, and in 17 it exceeded 50 percent. Among these countries, Switzerland stood out with a USD 44.4 million export increase, Azerbaijan with a USD 39.1 million export increase, and Venezuela with a USD 15.9 million export increase compared to May of the previous year.

Automotive led the way

The May leader was the Automotive sector with USD 1 billion 203 million in exports, while the Chemical Substances sector came second with USD 1 billion 177 million, and the Ready-made Clothing sector came third at USD 840 million 203 thousand. Compared to the same month of the previous year, the Automotive sector declined 56.3 percent, the Chemical Substances sector declined 39.1 percent, and Ready-made Clothing declined 48.2 percent. The strongest performers in May were Fresh Fruits and Vegetables, which reached USD 159.6 million in exports with a 13.4 percent increase, and the Ships and Yachts sectors, which reached USD 58.2 million with a 7.8 percent increase. In May, exporters managed to wave Turkey's flag in 205 countries and regions. The top 3 countries with the most exports were Germany with USD 919 million, the USA with USD 881.6 million, and Iraq with USD 602.9 million. The share of the top 10 countries in exports was 49.2 percent, while this share rose to 67.4 percent in the top 20 countries. A total of 16 countries, including the USA, Germany, Spain and Iraq, managed to export from every sector. The European Union, the largest market, saw its share in exports fall to 45.4 percent with a volume of USD 4.53 billion.

Most striking increase seen in Yalova

Looking at provincial exports, in May 13 provinces increased their exports. The top 3 provinces with the most exports were respectively Istanbul with USD 3 billion 822 million, Kocaeli with USD 626 million, and Izmir with USD 589 million. The most striking increases were seen in Yalova, which reached USD 42 million in exports with a 981 percent increase, Kastamonu, which reached USD 38 million with a 460 percent increase, and Gümüşhane, which conducted USD 7 million in exports with a 324 percent increase. While the Ships and Yachts sector in Yalova increased exports 3,491 times, the Ferrous and Non-Ferrous Metals sector in Kastamonu increased exports 320 times. The Steel sector in Zonguldak increased exports 544 percent, while the Electrical-Electronics sector in Balıkesir increased exports 449 percent.

Exports to 160 countries at TRY 2.9 billion

During the month, exports to 160 countries amounted to TRY 2 billion 926 million. 4,929 companies preferred Turkish Lira in export transactions.

Negative impact of parity was USD 129.4 million

Exports on a volume basis fell 23.5 percent to 10.7 million tons in May compared to the same month of the previous year. Finally, in May, the negative impact of the Euro-dollar parity was USD 129 million 451 thousand.