Export was 11,5 billion dollars in March with an increase of 2,6%

Being in USA with Presidency Committee, TIM President declared March export numbers:

Our export is back on increase trend.

Export was 11,5 billion dollars in March with an increase of 2,6%.

Turkish Exporters Assembly (TIM) declared export data of March. According to the data, with an increase of 2,6% compared to the same period of previous year, export became 11,5 billion dollars in March.

While automotive sector maintained its leadership with 2 billion dollars on sectoral basis, it was followed by ready-wear and garment, Chemical Materials and Products.

TIM President Mehmet Büyükekşi touched upon the fact that two-month successive increase of export increased motivation of exporters and pointed at new markets for continuity of increase.

Büyükekşi stated “We visited 6 countries at the helm of our honorable President in 2016 until today. As exporters, we described potential of our country in those visits. Now we are in USA, world's biggest economy. We have a lot to learn from this giant economy that steers the world.

Büyükekşi told “Being a first in the World in electronic communication sector, 4,5G is one of the biggest indicators of Turkey's great breakthrough”.

Turkey kept up its rising performance it caught in February after 14 months in March as well. According to March data of Turkish Exporters Assembly (TIM), compared to same period of previous year, export was 11,5 billion dollars with an increase by 2,6%.

While total export was 33,4 billion dollars in the first 3 months of the year with a decline of 9,8% compared to the same period of previous year, increase by 10,9% in the same period on kilogram basis drew attention. Parity effect in March was 117 billion dollars. Parity effect was positive after a long period of time. Export was 140,3 billion dollars with a decline by 9,2% in the last 12-month period.

According to TIÖ data, while Automotive sector made the highest export with 2 billion dollars, it was followed by Ready-Wear and Garment with 1,5 billion dollars then Chemicals and Chemical Products with 1,2 billion dollars. While Shipping and Yacht sector had the highest increase of export in March by 69%, increase of export in Jewelry sector was 24,7% and in Defense and Aviation Industry sector was 21%.

Export to UN maintains its tendency to increase

The first 5 country that we exported the most in March were Germany, England, Iraq, Italy and USA. Export to Germany increased by 12,4%, to England by 4,8% and to Italy by 15,4%. Export to Iraq declined by 12,8% and USA by 0,3%. Additionally, among the top 30 country that we exported the most in March, the Netherlands took the lead in highest increase of export by 53,9%. Iran was in second space with an increase of 44,2% after embargo was displaced. Considering other outstanding countries in terms of an increase of export in March, export to Dubai increased by 482,5% and Iceland by 257,2%. On regional basis, while export to UN increased by 13,9% in the last month, export to Middle-East declined by 1,6%, Africa by 6,5%, North America by 1,7% and CIC (Commonwealth of Independent Countries) by 22,2%.

Considering the top 10 cities that exported the most, export in March in Istanbul rose by 3,4%, Bursa by 4,8%, İzmir by 5,4%, Gaziantep by 14,1%, Manisa by 19,2%, Denizli by 5,3% and Hatay by 1,9.

Increase of export motivated exporters

Indicating that the export data that were on an increase in March motivated exporters, TIM President Mehmet Büyükekşi stated that they are increasing their foreign contacts for continuation of success and they are taking significant steps for new markets. Büyükekşi told “We visited 6 countries at the helm of our honorable President. As exporters, we both described the potential of our country and re-discovered the countries that we visited. Now we are in USA, the world's biggest economy, the second biggest exporter and biggest importer.”

“We do not have time to waste”

Reminding that USA had presented its “National Innovation Strategy” around 1945-1950 and Turkey did not even open to foreign countries at that time, Büyükekşi told “USA economy attained its current position by investing in Re-De, innovation and entrepreneurship during the last century. We do not have another century to wait. We should take a leap at these areas immediately. We are witnessing rise of technology-intensive companies in the world. In the ranking of companies with highest market value prepared by Goldman Sachs, we see that only 5 of the first 20 biggest companies in 2005 could rank in 2015 as well. 8 of 20 biggest companies of the world in 2015 consist of internet and computer companies such as Apple, Facebook and Google. World's retail giant Wal-Mart is not on the list. This situation once again proves that companies that caught up with the times in terms of technology race to the top”.

“Now World talks about start-ups”

Stressing upon that start-up companies, which made a presence on the last 30 years in USA that possess a century old petroleum, electricity, automotive and retail sector companies, were able to obtain great successes, Büyükekşi continued:

“One of the best examples to start-up companies is certainly 'Google' that reached 390 billion dollar market value within 20 years. Entrepreneurship ecosystem in Turkey is coming into existence newly. Nevertheless, success stories of some companies such as yemeksepeti.com that was able to reach 589 million dollar value within 15 years give us hope. We believe these success stories will gradually increase with our works on entrepreneurship and innovation. Today, we see Chinese and Indian academicians in charge of departments such as mathematics and engineering in leading universities of USA. We can turn Turkey into a country of opportunities by drawing genius children of immediate geography to our country.”

Being a first in the world, 4,5G is one of the most significant indicators of Turkey's great breakthrough.

Turkey is a country that met 2G in 98 and 3G in 2009. We are excited about moving on to 4,5G which is a first in the world. Mobile internet will be 12 times faster with 4,5G. This development will provide great contributions in our economy. Considering that each 10% increase in wideband access provides 1-1,5% growth to Gross National Product, it will have a positive effect on our country.

“New Money Market” will help exporters to see ahead

Turkish Exporters President (TIM) Mehmet Büyükekşi explained that exporters will be able to see ahead in the long-term and manage risk of interest better with “New Money Market” to be created. Büyükekşi's statement concerning his assessments on growth and TIM's foreign contacts are as such:

“Our Vice President Mehmet Şimşek's statement in the last weekend was quite pleasing for us, exporters. With the new guaranteed organized money market that is planned to be formed within Istanbul Stock Exchange within 6 months, companies making transactions in the market will be able to see ahead for the long run.

Thanks to the new market in question that will create long-term TL interest rates, our companies, exporters and other actors in the market will be able to manage the risk of interest better, take loan easier and more importantly see the future in the long run. We will be able to smooth the way for our exporters who make investments and create employment against global fluctuations and policy changes (FED, European Central Bank, BoJ).

“We are expecting our export to provide positive contribution about 1 to 2 points to last quarter growth in 2015.”

In spite of dull trend in global economy, it is quite pleasing to see positive developments in economic indicators of our company. Economy confidence index in March was 78,3 with an increase of 9,5% compared to previous month. Capacity usage rate increased by 0,8 points and became 74,3% in March compared to previous month and it increased by 1,9 compared to the same month of previous year. Similarly, there was increase in reel sector confidence index and consumer confidence index.

We can observe this positive table in our growth numbers as well. We are among world's fastest growing companies with our growth rate in the first 3 quarters of 2015. With 2015 4th quarter growth number that will be declared on March 31st, we believe we will catch annual 4% growth rate which is our 2015 Middle-Term-Plan (OVP). Another pleasing subject is our expectation that contribution of net export in 4th quarter will be positive. In parallel with our OVP targets, we are expecting positive contribution of net export in growth in 2016. Our first increase of export in 14 months and our expectation of export increase in March play a big role in our expectation of positive contribution.

“Our USA visit at the helm of our honorable President has a considerable importance for our exporters”

As an outward-oriented company, Turkey follows an active strategy in order to improve mutual commercial and economic relations. In this line, after visits of Presidency committee to Chile, Peru and Ecuador at the end of January 2016, there were official visits to Ivory Coast, Ghana and Nigeria with participation of 150 business man between February 28-March 3. Our next stop is United States of America which is world's biggest economy with 18 trillion dollar Gross National Product.

Under leadership of our President, the committee visit that will be held between March 29-April has a substantial significance in terms of our exporters as well. Being the biggest importer with its almost 47 thousand dollars per capita income and 2,3 trillion dollar import, USA is a market that many of our sectors can take a step. When we take a look at the products that USA, which is our 5th biggest export market, imports the most, there are electrical devices, machinery, mechanical devices and motor land vehicles. Motor land vehicles, machinery and mechanical devices are primary export products to USA. As it is seen, we have already comparative advantage in many product and sector compared to other countries.

On the other hand, our country's share in USA's total import reached its highest value until today by 2,8 per thousand at the end of 2015. We are expecting this visit to result in positively in terms of increasing this value and our export to have a more effective place in this market.

“We will contact USA Trade and Industry Chamber authorities in order to open TTM (Turkish Trade Center) in our USA visit.”

Along with the mutual business meetings to be held by our businessmen, we will take action for Turkish Trade Centers that our exporter companies can conduct their marketing operations for 365 days a year. Opening process of TTMs is in progress in Iran, U.A.E., England and Germany. We started works for opening TTMs in USA, which draws investment the most in the world and at 7th rank in convenience of business statistics. In order to actualize TTMs in different states of America, we will contact USA Trade and Industry Chamber authorities.

“Our exporters will visit Indonesia after Taiwan and take significant steps towards future with Business Forum to be performed by businessmen of both countries.”

We are holding trade committee visits as TIM in order to contribute in our country which gradually enhances its role in world trade. We set off with the plan to hold trade committee visits to 34 countries that form roughly half of world economy and one third of world trade in 2016. Since New Year, we held trade committee visits to THY-Rwanda, Vietnam, Mexico, Colombia and Taiwan. We included one student to each committee visit within our InovaTIM activities. We are conducting trade committee visits with the purpose of setting foot on every market in the world and clearing our products through all of the customs and these visits will continue in the next period without slowing down.

Our first stop will be Indonesia, a Far-East country that is one of the biggest countries of the region. We have 207 million dollar export to Indonesia where we plan to open TTM. Indonesia has a high potential in iron-steel products, good processing, packaging, machinery and equipment, textile machinery sectors and also in agriculture products such as tobacco, fresh fruit and vegetable. Our exporters will know this market better and maintain their contribution in our country increasing in steps. As TIM, we are aiming to increase our export in a permanent and sustainable way with our works in homeland and abroad that we conduct with both our Government and other institutions.”