Positive Export Outlook in June

Turkish Exporters Assembly (TİM) announced that Turkey's exports in June 2020 reached USD 13 billion 469 million, representing a 15.8% increase. The trailing 12-month export figure was recorded at USD 75 billion 55 million, down 15.1%. Compared to May, exports recorded a record growth rate of 35.2%. Of the 27 sectors, 24 achieved export increases, and 1,443 companies joined the export family in June. The top five exporting sectors were Automotive, Chemicals, Ready-made Clothing, Steel and Electrical-Electronics. TİM Chairman İsmail Gülle, commenting on the figures, stated: "The export family continued to serve as the engine of production Turkey during the pandemic period, saying 'Turkey First, Exports First.' Turkey established itself as the 'reliable port' of global trade and commenced an extraordinary course in exports. Just as our country managed to increase exports despite adverse developments in world trade and financial attacks against Turkey on numerous occasions, we succeeded again today. We are aware of the extraordinary opportunities presented by extraordinary circumstances. We trust our exporters. When it comes to Turkey, we did it yesterday, we do it today, and we will do it tomorrow," he said. Gülle noted that international organizations continue to revise their expectations regarding the pandemic's impact on the global economy in a negative direction and assessed the pandemic's effects on the world economy. TİM Chairman İsmail Gülle stated: "While the IMF revised its global economic contraction expectation for 2020 from 3% to 4.9%, and Fitch from 3.9% to 4.6%, the World Bank forecasts a 5.2% contraction this year. Many countries among our target markets are expected to face significant economic contractions in 2020. The IMF expects Mexico to contract 10.5%, the United Kingdom 10.2%, South Africa 8%, and Russia 6.6% this year. Purchasing Managers' Index (PMI) data indicates that the pace of global economic activity contraction is slowing. In June, manufacturing and services PMI data in China rose above the 50 threshold; in the Eurozone, the PMI index increased over 40% compared to May, reaching 46.9. Our greatest hope is that recovery accelerates in the global economy and particularly in our country's economy," he said.

Turkey First, Exports First

TİM Chairman İsmail Gülle noted that the pandemic negatively affected Turkey's production and exports in March, April and May, as in the rest of the world. Gülle continued: "The export family continued to serve as the engine of Turkey's production during the pandemic period, saying 'Turkey First, Exports First.' I heartily congratulate all exporters for the exceptional struggle they demonstrated during this extraordinary period. We have passed the first month of the normalization process that began in June in our country. Turkey established itself as the 'reliable port' of global trade and commenced an extraordinary course in exports. Just as our country managed to increase exports despite adverse developments in world trade and financial attacks against Turkey on numerous occasions, we succeeded again today. We are aware of the extraordinary opportunities presented by extraordinary circumstances. We trust our exporters. Because they have always done what was said to be impossible and accomplished what was said to be unattainable. When it comes to Turkey, we did it yesterday, we do it today, and we will do it tomorrow." Gülle also touched upon the measures taken to enable companies to overcome the demand shock created by the pandemic with minimal damage. Emphasizing that they attach great importance to increasing the credit volume for exporters and facilitating their access to financing, Gülle said: "We witnessed the positive contributions of the support provided by public banks, particularly Eximbank, and private banks to exporters in all sectors in June export data. In this context, we signed a protocol with Türkiye İş Bankası, Turkey's first national bank, which we believe will further strengthen our exporters' position in global trade. This cooperation is of great importance in terms of offering exporters low-interest credit, applying positive discrimination towards women exporters, and encompassing a high volume of USD 500 million. I want to note that 53 demands that emerged during the pandemic period and which we raised as TİM have been resolved at jet speed thanks to the dedication of the Treasury and Finance Ministry and the Trade Ministry. Our June export figures reflect this great effort. On behalf of the entire export family; for the intense efforts they demonstrated during such a challenging period, we once again express our sincere gratitude to our esteemed ministers before Mr. President. We hope to see the positive reflections of the successive steps taken during this period even more in both the new normal and the process thereafter," he said. Stating that as TİM they continue to evaluate all opportunities and risks for exporters individually, Gülle noted that the struggle for exporters has just begun. Gülle also disclosed information about the work carried out in June for Turkey's and exports' future within the framework of TİM's action plan. TİM Chairman Gülle stated: "In June, within the scope of our New Generation Trade Diplomacy activities, we organized another Virtual Trade Delegation coordinated with our Trade Ministry. We conducted our third Virtual Trade Delegation between 15-25 June to India, covering the Agriculture, Food and Non-Food Fast-Moving Consumer Goods, Agricultural Machinery, Cold Storage and Air Conditioning sectors. Virtual Trade Delegations are of great importance in ensuring intensive commercial cooperation, which we have identified as the second phase of the joint struggle against the global virus pandemic. Our Virtual Trade Delegations will not be limited to Uzbekistan, Kenya and India; as TİM, we will continue our New Generation Trade Diplomacy activities uninterruptedly with our export family of 95,000 members in target markets."

1,443 companies joined the export family in June

TİM Chairman Gülle, announcing that many new companies entered the export sector in June, said: "As a result of awareness regarding our exports, which has been established as an indispensable pillar for today and the future of Turkey's economy, and our SME export mobilization training that we conduct in every corner of our country as TİM; I am pleased to announce that 1,443 companies joined our export family in June. These newly exporting companies realized USD 101 million 384 thousand in exports in June. When viewed at the company level, a total of 38,373 companies exported in June," he said.

Exports to 144 countries increased by USD 2.43 billion

Despite the negative picture in global trade, Turkey managed to increase its exports to 144 countries by USD 2.43 billion in June. Among these countries, the United Kingdom stood out with USD 304 million export increase compared to June of the previous year, the USA with USD 272 million export increase, and Israel with USD 162 million export increase.

Automotive maintained its leadership

The Automotive sector led June with exports of USD 2 billion 16 million. The Chemicals sector ranked second with USD 1 billion 425 million in exports. The Ready-made Clothing sector, reaching USD 1 billion 358 million, ranked third; the Steel sector with USD 1 billion 129 million ranked fourth; and the Electrical-Electronics sectors with USD 903 million ranked fifth. The strongest performers in June were Hazelnut and Products with USD 128.4 million in exports, up 69.3%; Cereals reaching USD 572.4 million, up 66%; Jewelry reaching USD 345.1 million, up 60.2%; Ships and Yachts reaching USD 88 million, up 58.8%; and Ornamental Plants reaching USD 6 million, up 55.2%.

Positive developments

Compared to May, June presented a more positive picture. While 25 of 27 sectors experienced export declines in May, 24 of 27 sectors managed to increase their exports in June. Germany was the largest exporting country In June, exporters shipped to 202 countries and regions. Germany with USD 1 billion 293 million, the United Kingdom with USD 1 billion 13 million, and the USA with USD 792 million were the top three exporting countries. The share of the top 10 countries in exports was 49.4%, while this share reached 67% in the top 20 countries. All sectors exported to exactly 17 countries, including the USA, Germany, Italy and the Netherlands. The European Union, the largest market, saw its share of exports decline to the 48.5% level, with a volume of USD 6.53 billion.

Remarkable export growth in Kastamonu

In June, 68 provinces increased their exports. Istanbul led with USD 5 billion 404 million, followed by Bursa with USD 931 million and Kocaeli with USD 865 million. In June, Kastamonu managed to realize USD 54 million in exports, up 631%. Significant export increases were recorded in Van and Kırıkkale. Kastamonu increased Ready-made Clothing sector exports 11-fold, while Van increased Mining sector exports by 161-fold. Kırıkkale increased Machinery sector exports by 44%.

Turkish Lira in export transactions

6,416 companies chose Turkish Lira for export transactions. Over the month, exports totaling TRY 4 billion 219 million were realized to 174 countries. The negative effect of parity was USD 31.7 million In June 2020, exports in volume terms increased 28.3% to 12.5 million tons compared to the same month of the previous year. The negative effect of Euro-Dollar parity in June was observed at USD 31 million 771 thousand.