Exports up 1.8 pct in June, seeing fourth rise this year


Exports rose 1.8 percent to $11.9 billion in June, compared to the same month of the previous year, seeing its fourth increase in 2016, according to the monthly report of Turkish Exporters Assembly (TİM) published on Friday.

Despite the increase in exports in the four months of this year, total exports for the first half of the year declined by 3.8 percent to $70.6 billion as opposed to the same period of last year, because of the falls in January and April. Also, exports have fallen by 6.6 percent within the last 12 months to $141 billion.

Germany ranked first among the countries to which Turkey sold its goods in June. While Turkey's exports to Germany, Italy and the U.S. rose 8.6 percent, 22 percent and 18.5 percent, respectively, the exports to Britain and Iraq declined by 4.4 percent and 14.9 percent, respectively. Exports to the European Union, Turkey's biggest export market, rose 8.6 percent.

Speaking in a televised interview on Friday, Cemil Ertem, President Recep Tayyip Erdoğan's senior economic adviser, expressed that it is conceivable that Turkey's exports to Britain and Germany, the largest export markets for Turkey, will see declines for the periods ahead.

Regarding the fluctuations in exports, speaking to Anadolu Agency, KapitalFx analyst Enver Erkan said exports were likely to be negatively affected by the British vote to leave the EU. "The U.K. climbed to first place in Turkey's export destinations in May, which will lead to negative effects on export volume because of Brexit," he said.

The automotive sector realized the highest export volume with $2.1 billion in June. The automotive sector, increasing its exports by 8.2 percent on year-on-year basis, was followed by the ready-made clothes and textiles sector and chemicals sector with $1.5 billion and $1.3 billion, respectively.

Regarding these export numbers, in written remarks, TİM Chairman Mehmet Büyükekşi said despite the fall in the first half of the year, in terms of the quantity, Turkey's exports increased by 6.5 percent, saying "this as a positive development."

Concerning the steps Turkey took to restore ties with Israel and Russia, Büyükekşi expressed that these developments will positively affect Turkey's exports. He also said Turkey's exports to Israel have already risen 77 percent; thus, exporters expect much higher rises to Israel. Also for Russia, Büyüekşi said the drop in exports was mostly because of the recession in Russia, adding that the lifting of sanctions will positively affect Turkey's food exports in the upcoming periods.

Regarding the U.K.'s decision to leave the EU, Turkey's second biggest export market, Büyükekşi said its effect on exports is expected to be limited in the periods to come.