Turkiye’s machinery exports increased to $18.6 billion

Turkiye’s machinery exports increased by 11.1% in the 8 months of the year compared to the same period of 2022, reaching $18.6 billion.

According to the statement made by the Machinery Exporters’ Association (MAIB), the exports of the machinery manufacturing industry reached $18.6 billion when free zones were included in the January-July period of this year.

While there was a decrease in Germany, Italy, the United Kingdom, France and Spain, the 5 European countries to which the most exports are made, revenues increased by 100% due to the increase in machinery prices. In the sector, where the average export unit prices per kilogram were $7.2, unit prices in exports to the USA and Russia were above $10.

Kutlu Karavelioglu, President of the Machinery Exporters’ Association (MAIB), who included his evaluations on the subject in the statement, stated that the pressure of tightening trends on growth rates continues in this period when the fight against global inflation has not yet yielded the desired results.

Noting that the next 8-9 months will be a period in which businesses must be resistant to new developments, Karavelioglu gave the following information:

“The possibility of continuing interest rate increases in Europe, where we export 61.2% of our machinery, means that weak growth will continue until the end of the year. This process may be experienced as a period of contraction in Germany, where we have the highest production and market integration, due to restrictions on trade with its two largest markets, Russia and China.

However, we should not overlook that in all the difficult times of Germany, the machinery manufacturers in Turkiye felt the need to benefit more from their production and competitiveness, and that all difficult processes presented extraordinary opportunities for the development of new collaborations.”

“Our production increased by 9.7% in the first half, when the production of developed countries contracted.”

Kutlu Karavelioglu emphasized that while leaving behind a quarter in which the world’s lowest growth figures of recent years occurred and a year in which global trade contracted rapidly, they can say that the 11.1% increase in machinery exports made their competitors jealous.

Noting that Turkiye’s production increased by 9.7% in the first half, when the machinery production of developed countries contracted, Karavelioglu said, “In this environment where access to finance has become difficult all over the world and investment costs have cut the appetite of businesses, we will look for new ways to increase our exports.”

Karavelioglu pointed out the increase in machinery and equipment investments in Turkiye and explained that this increase is positive in terms of growth data.

Noting that China exported 7 machines to Turkiye in 7 months of the year, Karavelioglu said, “Considering the 35% taxes we face on exports, we say it would be appropriate to sign a free trade agreement with China.”

Source: Trthaber / Prepared by Irem Yildiz

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