World Economy

Slow EU Recovery Impacts Turkish Exports

Slow EU Recovery Impacts Turkish Exports Slow EU Recovery Impacts Turkish Exports

Turkish exports decreased by 6.4 percent last month compared to November last year as regional tensions and a slow EU economic recovery hit the country’s exports, the Turkish Exporters’ Assembly announced Monday.

Exports totaled $12.4 billion as economic recovery in Europe continued at a slower pace, World Bulletin reported.

The assembly’s president Mehmet Buyukeksi said in Turkey’s northern Sinop Province that the US, UK, Canada and South Korea were achieving growth in their economies, but a slow economic recovery continued to pose a risk in the EU.

“Over the last 11 months, Turkey achieved 4.4 percent increase in its exports –reaching $144.3 billion,” Buyukeksi said.

“We expect an important improvement in Turkey’s inflation rate and its current account balance after a 30 percent decline in petrol prices in the world,” he added. According to official reports, Turkey’s inflation rate is at 8.9 percent.

According to Buyukeksi, Turkey has diversified its export markets in recent months after the geo-political tensions in the region.

“Over the first nine months, global exports from 70 countries increased by 2.6 percent, while Turkey achieved an increase of 5.5 percent - more than twice the world average. Turkey’s import from EU did not increase, but its exports to the bloc increased by 13 percent in the same period,” he said.

According to the European Commission, the EU is Turkey’s number one import and export partner, while Turkey ranks seventh in the EU’s top import and fifth in export markets. 

Exports to Germany declined 7 percent year-on-year and the automotive industry alone registered $1.8 billion in exports for November.

Exports to Iraq fell by 23 percent in November because of recent turmoil in the country.

However, the assembly said that the country’s exports to Iran increased by 137 percent, which is the largest increase in November exports.

Turkey is the 16th-largest economy in the world, according to last year’s GDP figures, and its major markets include Germany, Iraq, the UK, Russia and Italy.

According to the president of the Union of Chambers and Commodities Exchanges of Turkey, Rifat Hisarciklioglu, recent developments in Iraq negatively affected Turkey’s economic relations. Turkey’s export has declined 40 percent since June this year.

An increase in exports is crucial for Turkey’s current account deficit. Turkish Economy Minister Nihat Zeybekci said in July that the continuing decline in exports to Iraq would create a $2.5 billion loss by the 2014 end.