Turkiye’s machinery exports increased by 10.1% in the 9 months of the year compared to the same period of 2022, reaching $21 billion. Most exports were made to Germany, Russia and the USA.
According to the statement made by the Machinery Exporters’ Association (MAIB), the exports of the machinery manufacturing industry reached $21 billion when free zones were included in the January-September period of this year.
The sector, whose exports decreased by 6.6% on a quantity basis, increased its revenues with the effect of an increase of nearly 20% in the average export per kilogram. Most exports were made to Germany, Russia and the USA.
MAIB President Kutlu Karavelioglu, who included his evaluations on the subject in the statement, stated that while the slowdown in the world economy and the main export markets of the sector continues, they are pleased that they managed to enter the last quarter by crossing the $20 billion threshold, and that they achieved this largely with the effect of the increase in the technology classes of the machines.
Noting that Turkiye went through an incredible test right in the middle of two wars, Karavelioglu said:
“While trying to predict what decisions the central banks of developed countries will make and what effects they will have on economic activities and investments, unfortunately, a new war has begun in our nearby geography. It is difficult to predict what effects the uncertainty in the Middle East will have in an environment where rising interest rates slow down demand, which in turn limits machinery and equipment investments and leads to a global recession. We expect the normal increase in investments to start again in the second half of 2024. We have the patience for this, but of course our primary wish is for peace to prevail among our neighbors.”
“We should evaluate the stagnation in our main markets as adaptation to the next period.”
Kutlu Karavelioglu stated that the main sources of the problems in the world economy in the first three quarters were high interest rates, expensive energy, inflation and decreasing orders in industry, and gave the following information:
“We managed to avoid all the negative developments in the world, such as the struggle for hegemony between the USA, China and the EU, as well as the embargo and trade restrictions imposed due to the Russia-Ukraine war. Our major problem at the moment is the stagnant indicators in Germany, our largest export market. We should consider this transition period as additional time for our adaptation to the next period that brings new conditions regarding sustainability.”
Karavelioglu noted that the preparations to be made this winter will be very critical in order to avoid bureaucratic obstacles regarding green transformation, and emphasized that there will be no compensation for the time missed in this regard.
Talking about their work on green transformation in the machinery sector and Border Carbon Regulation, Karavelioglu explained that they are pleased with the new practices implemented under the leadership of the Ministry of Commerce to support exporters, but they also need to eliminate the conditions that encourage imports.
Karavelioglu stated that difficulties in accessing finance continue in Turkiye, as in the rest of the world, and called for measures to be taken to break the import trend in the machinery sector.
Source: Trthaber / Prepared by Irem Yildiz