Exports up in November, likely to exceed annual target

Last month’s export figures were announced by Turkish Exporters’ Assembly (TİM) President Mehmet Büyükekşi in a press conference at the Habur Border Gate Building yesterday, which was also attended by State Minister Hayati Yazıcı.

According to the information given by Büyükekşi, exports amounted to $87.61 billion in the first 11 months the year, marking a decline of 27.31 percent compared to the same period of last year. The rolling 12-month average as of the end of November stood at $94.8 billion, indicating a fall of 27.07 percent. The downward trend in exports, however, ended in October this year and last month also posted a 1.54 percent increase in exports over the same month of last year.

In an assessment of the rise in exports last month, Foreign Trade Minister Zafer Çağlayan, who was in Geneva to attend the World Trade Organization (WTO) meeting, said on Tuesday that these figures are a good sign. Even though the agricultural sector posted almost same level of exports this November as it did in the same month of last year, Çağlayan stressed that the mining and industrial sectors had managed to raise their exports last month by 14.4 and 1.5 percent, respectively, over November 2008. Iron and steel industry exports rose by 8.6 percent while cement and soil products saw a 12 percent increase in exports. Exports of ferrous and nonferrous metals also climbed by 8.7 percent in November compared to the same month of previous year. “The increase in commodity prices due to the improvement in markets also has a role in the rise in exports of these products. However, the upswing in exports of ready-wear and apparel, motor vehicles and electrical and electronic goods indicates that our efforts have started to bear fruit,” Çağlayan stated.

November posted an export figure which is very close to $9 billion which accounts for a 1.5 percent increase over the same month of last year, the minister said, stressing that this rise was achieved despite the four-day Eid al-Adha (Feast of the Sacrifice) holiday during which customs were closed. “If we consider only the first 26 days of November of both 2009 and 2008, we will see that the rise was more than 8 percent last month over November 2008.”

The minister noted that these figures indicate that the $98.5 billion target of the mid-term economic program for 2009 will be exceeded by the end of the year and that exports for the year are predicted to be more than $100 billion.

Exports to 24 countries that consume 73 percent of Turkey’s total exports, amounting to more than $1 billion, decreased by 30 percent during the January-November period this year, the minister said, attributing this sharp drop mostly to the decline seen in exports to 11 European Union member countries along with Russia and the US because of the global economic downturn. The demand for exports in the world is expected to start rising again in 2010, he added.

On the other hand, exports to North African countries like Libya, Egypt and Algeria along with Iraq, which were less affected by the crisis compared to rest of the world, rose by significant amounts, Çağlayan noted. Exports to Saudi Arabia increased by 58.7 percent last month compared to October 2009 and reached $168.7 million, he said. Turkey’s improving relations with its neighboring and other countries was also a benefit in terms of rising exports to these countries, Çağlayan said. Iraq, for instance, became fifth on the list of countries which purchased the largest amount of exports this year, climbing from its previous place of 10th last year.

Assessing the export figures, Büyükekşi said he was pleased to see the rise in exports. The upswing in exports started in October after a continues fall since October of last year. The rise in exports is a sign of recovery and indicates that employment level, capacity utilization and growth will improve in the days to come, he said. “We expect the rise in exports to be between 20 and 30 percent in December. Exports will exceed $100 billion by the year’s end,” Büyükekşi predicted.