Record-breaking Turkish exports surpass $25 billion in July for the first time.
Turkey's exports reached an all-time high in July 2024, surpassing the previous record with a significant 11% year-on-year increase. The country's outbound shipments amounted to a staggering $25 billion, marking a monumental achievement in the nation's economic history [1][2][3][4].
According to Trade Minister Ömer Bolat, this "legendary month" was characterised by six major accomplishments, including a new export record, a narrowed trade deficit, a slowdown in import growth, and more [1][2][3][4]. The minister attributed these achievements to sustained efforts to rebalance and stabilise the economy, as well as the strong performance of key sectors such as automotive and chemicals [1][2][3][4].
The chemicals sector, in particular, showcased its best performance yet, with $3.4 billion in exports in July, and a total of $19 billion from January through July [1][2][3][4]. The automotive sector continued its leadership with $3.8 billion in exports in July [1][2][3][4]. Ready-made clothing, electrical and electronics, and steel followed closely behind, with values of $1.58 billion, $1.57 billion, and $1.4 billion respectively in July [1][2][3][4].
The foreign trade deficit also saw a significant decrease, dropping to $6.4 billion in July 2024, down 12% from $7.3 billion in July 2023 [1][2][3][4]. Imports did increase by 5.4% to $31.4 billion, but the minister assured that they remained at stable and reasonable levels [1][2][3][4]. The slowing growth rate of imports and stronger exports contributed to reducing the trade deficit and improving the export-to-import coverage ratio [1][2][3][4].
Turkey's impressive export growth is not limited to July. Compared to June 2024, exports increased by $4.5 billion [1][2][3][4]. The country's next target is to reach $26 billion in monthly exports [1][2][3][4].
In addition to its economic success, Turkey continues to be a pillar of stability in the region, despite ongoing instability and global conflicts [5]. The country is actively engaged in trade diplomacy through multilateral, bilateral, regional, and global agreements [5]. A recent directive was issued to grant longer-term visas to Turkish citizens who have previously travelled to the EU and returned regularly [5].
With nine to ten trade barriers remaining to be removed in the progress with the European Commission, Turkey is poised to continue its economic growth and maintain its position as a key player in the global market [6]. The foreign trade deficit in July 2024 is the lowest in the past nine months, indicating a positive trajectory for the country's economy [6].
Sources: [1] Anadolu Agency [2] Reuters [3] Bloomberg [4] CNBC [5] Turkish Ministry of Foreign Affairs [6] Turkish Exporters Assembly (TIM)
- The minister's diplomatic efforts, as shown through Turkey's active engagement in trade agreements, aim to further enhance the country's economic growth in the future.
- Despite the economic achievements, the ongoing instability in the region could potentially impact Turkey's export-oriented economy, particularly in sectors like travel and tourism.
- While Turkey's defense budget remains focused on security, a more significant allocation could potentially stimulate economic growth in related sectors, such as sports and technology, by fostering research and development.
