Turkey's Machinery Exports Reach $18.6 Billion

Turkey's machinery exports rose 11.1 percent to USD 18.6 billion in the first eight months of the year compared to the same period in 2022. According to a statement from the Machinery Exporters Association (MAİB), machinery manufacturing sector exports reached USD 18.6 billion in the January-July period of this year, including free zones. While declines were recorded in the five European countries with the highest exports—Germany, Italy, the United Kingdom, France and Spain—revenues increased by a percentage due to rising machinery prices. In the sector where average export unit prices per kilogram stood at USD 7.2, unit prices for exports to the United States and Russia exceeded USD 10. In assessments included in the statement, Machinery Exporters Association (MAİB) Chairman Kutlu Karavelioğlu stated that during this period when the global fight against inflation has yet to yield desired results, tightening trends continue to exert pressure on growth rates.

Karavelioğlu, stating that the coming 8-9 month period would be a time during which enterprises need to remain resilient against new developments, continued as follows:

"The possibility of interest rate increases continuing in Europe, where we conduct 61.2 percent of our machinery exports, means weak growth will persist through year-end. This period could be experienced as a contraction phase in Germany, where our highest production and market integration are located, due to trade restrictions with two major markets, Russia and China. Nevertheless, we must not overlook that Germany has had to take greater advantage of the production and competitive strength of Turkish machinery manufacturers during all its difficult periods, and that all challenging processes offer exceptional opportunities for developing new partnerships." "While developed countries' production contracted in the first half, our production increased 9.7 percent" Kutlu Karavelioğlu emphasized that after passing through a quarter that saw the world's lowest growth figures in recent years and a year of rapid global trade contraction, the 11.1 percent increase in machinery exports could be said to have made competitors envious. Noting that Turkey's production increased 9.7 percent in the first half when developed countries' machinery production contracted, Karavelioğlu stated, "In an environment where access to financing has become difficult worldwide and investment costs have dampened enterprises' appetite, we will seek new ways to increase our exports." Karavelioğlu pointed to the increase in machinery and equipment investments in Turkey, saying this growth was positive in terms of growth data. Recording that China made 7 machinery exports to Turkey in the first seven months of the year, Karavelioğlu stated, "When we consider the 35 percent tariffs we face in exports, we say it would be fitting to sign a free trade agreement with China." Source