The Ministry of Trade is stepping up attempts to boost exports to far-flung countries. Turkey’s exports to these countries surpassed $27 billion last year, a 42.2 percent rise over the previous year.
According to the data, the majority of Turkey’s exports are provided to nations more than 2,000 kilometers away. Therefore, the Ministry of Trade expects to increase the number of faraway countries to which exports are made. The Ministry has been working on the Far Countries Strategy for quite some time that is expected to be released soon.
The United States, Canada, Australia, Brazil, South Korea, Japan and China are among the 18 target countries mentioned in the strategy. Indonesia, the Philippines, South Africa, India, Malaysia, Mexico, Nigeria, Pakistan, Chile, Thailand, and Vietnam make up the rest of the countries. According to the Ministry’s research, Turkey receives 0.26 percent of the 8.2 trillion dollars’ worth of imports of 18 nations that are approximately 8,500 kilometers away. The Ministry anticipates opening up to these markets and growing exports to 82 billion dollars.
The strategy will increase the export of services to these countries in addition to the export of goods. Potential goods and services sectors were identified within the scope of the strategy. It is intended in this sense to open up the offshore contracting and technical consultancy sectors to new markets. In addition to the strategy of distant countries, the International Logistics Centers project has also come to an end. It is anticipated that this project will contribute considerably to the Far Countries Strategy.
Export to Distant Countries
According to the data of the Turkish Exporters Assembly (TIM), Turkey realized exports of 18 billion 999 million 738 thousand dollars to these 18 countries in 2020. This figure reached 27 billion 16 million 919 thousand dollars with an increase of 42.2 percent last year.
Among these countries, the largest export was to the USA, with an amount approaching 12.9 billion dollars. Exports to the USA increased by 45 percent last year compared to the previous year. In this period, exports to China amounted to 3.3 billion dollars with an increase of 26.2 percent. Exports to Canada increased by 67.8 percent and approached 1.6 billion dollars. Finally, exports to India increased by 34.4 percent and exceeded 1.2 billion dollars.
The highest increase in exports on a rate basis was in Chile with an increase of 122.2 percent. Last year, Turkey exported 593.3 million dollars to this country. Exports to Brazil also increased by 77.4 percent and exceeded $995.6 million. Exports to Mexico increased by 55.5 percent to 755.6 million dollars. Finally, exports to South Africa increased by 50.2 percent to 883.4 million dollars.
Expectations and Targets for the Turkish Economy and Foreign Trade Performance
According to the IMF’s World Economic Outlook Report for January 2021, Turkey’s 2021 growth forecast was increased by 1 point compared to October, to 6 percent. For 2022, the growth forecast for Turkey was announced as 3.2 percent, with a 0.5 percentage point decrease compared to October.
According to Euromonitor analysis, after 2022, Turkey is expected to grow by about 3.2 percent per year in the 2024-2027 period. As a result of the economic reforms, domestic and foreign private enterprise investments are expected to increase in the coming period. The GDP growth rates targeted by Turkey displayed 0.3 percent growth in 2020. In addition, 5.8 percent growth was targeted in 2021, 5 percent in 2022 and 5 percent in 2023. Turkey’s exports are expected to increase by approximately 89.7 percent in the 2021-2035 period.
An inevitable change in the global supply structures is expected to affect Turkey in a positive way as well. Turkey is among the countries that can benefit most from the change in global supply structures. As a matter of fact, supply changes are expected to be high in many sectors where Turkey has the infrastructure and competitive advantages in production and exports.
There is no doubt that the new strategy of the Ministry of Trade will also contribute to these anticipated growth values. Especially south-east Asian countries can be expected to make a great contribution with their large economies and populations.
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