Foreign Trade News from Turkey

 Economy Minister Nihat Zeybekci has said an e-commerce and logistics zone will be established next to Istanbul’s third airport, which is currently under construction, while signaling new automotive investments and exports in the country.  Speaking at a meeting with the head of the Turkish Exporters Assembly (TİM), Mehmet Büyükekşi, Zeybekci also said Turkey will likely reach its highest-ever boost in exports in July and close 2017 with an over $155 billion export figure.  “We have taken a number of steps in a bid to solve the logistics problems, which were faced by many sectors, including the automotive sector. We will establish a free zone focusing on e-commerce and logistics next to Istanbul’s under-construction third airport,” he said late on July 13, as quoted by Reuters on July 14.  He noted that Turkey would probably make more than $155 billion worth of exports.  “Unless negative developments erupt, we hope to surpass our exports over $155 billion this year…Probably, we will hit the highest export boost in July,” he added.  The airport is planned to serve 90 million passengers annually once the first stage of the project is completed in the first half of the 2018. According to data from the Economy Ministry, Turkey’s exports regressed to $142.6 billion in 2016 with a 0.84 percent year-on-year decrease. TİM data has showed that exports hit $77.5 billion in the first half of 2017 with an 8.2 percent increase compared to the same period of 2016.  New automotive investments ‘underway’ Zeybekci also noted that a number of key investments would be launched in the upcoming period, a factor which will boost exports.  “Some automotive brands, which are active in Turkey, plan to make our country one of the key production bases of their companies,” he noted.  Nearly 15 global automotive giants have production facilities in Turkey. The sector is slated to make nearly 1.7 million vehicles this year by using more than 85 percent of capacity.  Turkish automotive production rose 20 percent year-on-year to 869,158 vehicles in the first half, with output up 8 percent to 141,161 vehicles in June, Turkey’s automotive producers’ body said on July 10.  Domestic automotive sales, including both cars, light and heavy commercial vehicles, fell 9 percent to 410,609 units in the first half as last year’s tax increases and forex induced price increases continued to put pressure on markets. Turkey’s automotive exports climbed 29 percent to 714,284 units, led by a 48 percent rise in car exports as manufacturers continued to ramp up the output of export-oriented models. Turkey’s Automotive Industry Association (İSO) also upped its year-end production forecast to 1.7 million vehicles from 1.65 million.

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 The value of Turkey’s exports rose 1.8 percent year-on-year to $12.7 billion in June as its trade with Russia soared, the country’s main exporters’ association said on July 1.  The Turkish Exporters’ Assembly (TİM) said exports in the first half of the year also climbed 8.2 percent to reach almost $76.4 billion.  Turkey’s total exports in the last 12-month period rose 4.5 percent compared to the previous 12 months to stand at $147.3 billion. In June, the automotive sector contributed the highest exports with $2.5 billion, up 16.4 percent over the same month last year.  It was followed by the clothing and chemical sectors with $1.4 billion and $1.3 billion, respectively.          The highest increase among industrial products was seen in ship and yacht sector exports with a 178 percent rise, TİM said.  Another prominent rising export sector in June was the olive and olive oil sector, up 63 percent.         Exports to Russia soar  Among the top 20 destinations for Turkey’s exports, Russia saw the sharpest rise, 89 percent, due to a fivefold increase of fresh fruit and vegetable exports, according to TİM.  Exports to Turkey’s main trading partner, the EU, rose 2.8 percent month-on-month in June, making its share of the country’s total exports 50.5 percent, the association said. Turkey’s exports to its second-biggest trading partner, North America, jumped 17.8 percent in the month compared to June 2016. Exports to Turkey’s other main export markets were also on the rise -- Germany (up 4.4 percent), the U.K. (up 2.1 percent), Italy (up 1.8 percent), the U.S. (up 14.1 percent) and Iraq (up 4.4 percent).  Commenting on the new figures, TİM head Mehmet Büyükekşi said the limited rise in June exports was due to the smaller number of working days due to the Muslim Eid al-Fitr holiday compared to the same period last year.         He added that Turkey saw a strong recovery in exports in the first five months of the year, which has helped the country’s growth rate.  In the first five months, Turkey’s exports rose 9.5 percent to $64.3 billion compared to the same period last year, according to the Turkish Statistical Institute (TÜİK).    “We believe that we will reach higher growth rates with the contribution of exports in the upcoming periods,” Büyükekşi said.

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Turkey consumer confidence rose by 11.1 percent in August from the previous month, data from the Turkish Statistics Institute (TÜİK) showed on Aug. 23.

The index was 74.44 in August, up from 67.03 in July, according to official data.  The index hit a six-year low of 58.52 last September, but has since recovered somewhat, even after the failed coup attempt.  Households turned optimistic about the general economic situation for the next 12 months, with the general economic situation expectation index increasing from 89.82 in July to 101.95 in August, according to the results of the TÜİK survey, made in cooperation with the Central Bank.  The household financial situation expectation index also increased by 6.6 percent compared to the previous month, becoming 94.19 in August. More consumers also expect a decline in unemployment rates and they seemed to be less pessimistic about their saving prospects.  

The latest figures were the highest since November 2015, following the parliamentary election, when the consumer confidence index rose to its highest level since April 2014, when it jumped 22.9 points from October 2015 to 77.15.

 

Source:http://www.hurriyetdailynews.com/ 

The Turkish economy will not suffer permanently from the failed coup attempt on July 15, despite a short-lived, downward impact on growth, Deputy Prime Minister Mehmet Şimşek said on July 18. He also said Turkey’s macroeconomic fundamentals were solid and the government would swiftly shift its focus back to carrying out structural reforms, in a televised interview on Bloomberg HT.  “The coup attempt will not make any permanent impact on the Turkish economy,” Şimşek said, noting that political stability and democracy had been strengthened in the country following the failed coup attempt and it was easier to make reforms in this environment.  “We had a bad dream and it was left behind... Our message is very clear, there is no need to panic,” he said.  “Our growth rate, foreign balances or other macro fields were not damaged,” added Şimşek. He noted he held teleconferences with more than 500 investors on late July 17 and answered their questions along with the Central Bank governor.  “The volatility will last for a very short term and we will back to the reform agenda very soon,” he added.  The Central Bank announced a raft of measures to minimize the adverse effects of the failed military coup attempt in Turkey, including unlimited liquidity.  “The Central Bank will provide banks with necessary liquidity, without limits,” said the bank in a written statement on July 17, following top level meetings. It also noted that the commission rate for the intraday liquidity facility would be zero.  “Banks will be allowed to place foreign exchange deposits as collateral without limits for necessary Turkish Lira liquidity,” said the bank, adding that its current foreign exchange deposit limits of around $50 billion may be increased and utilization conditions (collateral and cost) may be improved if deemed necessary.  Source: Hürriyet Daily News