Turkey’s exports fell by 6.4% in June to $11.7bn, the Turkish Exporters’ Assembly (TIM) reported on July 1. The pace of decline in exports slowed from May’s sharp fall of 19% y/y thanks to base effect.

Weaker EUR/USD cost Turkish exporters around $1.2bn in revenues, said the association, adding that the cost of weaker EUR was $6.8bn in the first six months of the year.

Exports to the EU declined by 5.5% y/y to $5.48bn in June, data of TIM showed, while exports to the Middle East rose by 3.3% y/y to $2.3bn. Shipments of manufactured goods to Africa fell by 5.6% y/y to $5.6bn in the month.

Germany, Turkey’s top export market, imported $1.1bn worth of goods from Turkey in June, an 8.7% y/y decline, while exports to the UK and Iraq fell by 1.8% y/y and 7% y/y, respectively.

Turkey’s automotive exports amounted to $1.98bn, representing a 2.7% y/y decline. The ready wear & confection industry’s export revenues declined by 8.2% y/y to $1.46bn, while steel exports fell by 21.8% y/y to $832mn.

In the first six months of the year, Turkey’s exports declined by 8.1% y/y to $73.3bn, data of TIM also showed.

“Turkish companies are now simultaneously exposed to 1) weak TL and 2) weak EUR. Contrary to general expectation that exporters are benefiting from a weaker TL, we think that valuations are yet to reflect the weak EUR and the potential slowdown in the domestic market”, commented Barclays in a report on June 23.