Turkey should be at the top of your list when considering where to import from. It has a fast developing economy, which may be ascribed to its residents’ healthy consumption across all industries. A lot of work is being put into the country to help it flourish and become known as a stable and welcoming place to do business.
The finance industry has undergone a comprehensive revamp in the previous 20 years. It was to assure reform and discipline. There are now many laws, regulations, and policies in place to manage the finance sector. This has obviously had an impact on international trade.
The bulk of Turkey’s economy is composed of a broad services sector. These include real estate, tourism, financial services, education, and health.
With its preferential trading relationship with the EU, it provides some significant benefits in terms of the EU-Turkey customs union. It makes trade significantly advantageous in 2022 for Turkish exporters and foreign importers.
Endless Options to Choose From
Turkey is a vast and fascinating market with plenty of export options. It is home to huge global corporations as well as small, locally owned firms with a strong entrepreneurial spirit. Despite recent political and economic setbacks, Turkey’s prospects are bright and there is still an opportunity for expansion.
Turkey exports countless goods and acts as a viable market in almost every sector. The automobile sector was at the top of the most imported goods from Turkey with $29.3 billion in 2021. It was followed by the chemicals and products sector with $25.3 billion in exports and the steel sector with $22.4 billion. The steel sector boosted its exports by $9.7 billion compared to the same month last year.
Chemicals and products climbed by $7.1 billion. They were the most noticeable advances in terms of sectoral improvements, along with iron and non-ferrous metals. They increased by $4.1 billion. Clothing, electrical equipment, machinery, iron or steel items, plastics, fruits & nuts, and paper also were in the surge. If your company needs any of the above-mentioned items, Turkey is a tried-and-true exporter.
Prestigious Trading Partners
Since the EU has been Turkey’s most significant trading partner for imports and exports, business ties between the EU and Turkey have grown closer in recent years. Turkey also ranks seventh in terms of EU imports. The Customs Union applies to industrial items as well as processed agricultural products. Turkey is required to harmonize with the EU acquis under the Customs Union agreement.
Turkey is also a member of the Euro-Mediterranean cooperation, known as Euromed. This organization’s purpose is to foster economic integration in 16 Mediterranean nations. The Turkish government has signed many double-tax treaties in order to protect international investors from double taxation.
Turkey is a major exporter of commodities from Germany, Russia, Italy, France, and China. Turkey’s biggest export destinations are Germany, the United Kingdom, Iraq, Italy, and France. A large number of items, such as refined petroleum, vehicles, vehicle components, raw iron bars, and delivery trucks, are sent each year to these places. Other than these goods, Turkey also exports a variety of goods. These include dried fruits, pickled foods, cotton, wheat flour, and cement.
Strategic Location for Trade
Turkey is located in both Europe and Asia and has borders with a number of countries. Because of its strategic location, it can serve as a launching pad for enterprises looking to expand into areas like Central Asia and the South Caucasus.
Turkey’s exports reached a new high of over 225.4 billion dollars in 2021. Now is the moment to take advantage of Turkey’s recent surge in corporate confidence. Foreign sales increased by 32.9 percent year on year in 2021, necessitating a welcome increase in the export objective for 2022 to 250 billion dollars. Exports have more than doubled since a low of 36 billion dollars, 19 years ago.
The epidemic harmed commerce with Ankara’s main trading partners, but exports have not only rebounded but have reached all-time highs in 11 of the previous 12 months. By October 2021, Turkey’s proportion of global exports had topped 1 percent. This marked another first for the country and a more than sixfold increase over the previous two decades. As of the end of 2021, the number of enterprises engaged in exports has risen to 101,386 from 33,523 in 2022. Over 32,000 new organizations entered the list in only one year.
A Promising Future
In the import and export industry, the Turkish market has made an extraordinary recovery in recent years. This has enticed investors and traders to establish businesses in Turkey in order to participate in a market with a large potential for increased revenues and returns.
With its recovery from the COVID-19 outbreak last year, Turkey grew at its fastest rate in a decade. According to the Turkish Statistical Institute, GDP increased 9.1 percent year on year in the fourth quarter. This performance was above projections, and up 1.5 percent over the previous quarter on a seasonally and calendar-adjusted basis.
The government is also putting in place an economic strategy that prioritizes growth, employment, investment, and exports. It is to be aided by a series of unconventional interest rate cuts that have lowered the central bank’s policy rate down to 14 percent.
Experts predict that the Turkish economy will increase by 5 percent in 2022 as a result of the policy initiatives implemented by the Turkish government.
These results show a significant improvement over the scenario 15 years ago. This is in the interest of the Turkish government in meeting its aim of being one of the top 10 economies in the world by 2023.
Regardless of changes in the exchange rate and the general level of prices at the global and local levels, Turkey is dedicated to stabilizing the currency and combating inflation.
Tried and Tested Market
Exports to the European Union, which account for about half of Turkey’s total exports, increased 33 percent year on year to 93.1 billion dollars, allowing Turkey to register a trade surplus of roughly 7.7 billion dollars with the EU. According to the figures, sales to the United States increased 44.6 percent year on year, or 4.54 billion dollars.
Exports to the United Kingdom increased by 22 percent in the first year after Ankara and London signed a post-Brexit free trade deal. The deal was signed in December 2020 to promote a 25 billion dollars economic cooperation.
Now is the moment to jump on board with the forecasted increase in Turkey’s exports.