Turkey’s exports fall 6.4% y/y in June

By bne IntelliNews July 1, 2015

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.

Turkish Exports                
(USD thousand) Jun-14 Jun-15 y/y, % share, % H1-14 H1-15 y/y, % share, %
AGRICULTURE  1,669,521  1,617,938 -3.1 13.8  10,936,995  10,150,523 -7.2 13.9
INDUSTRY  10,433,937  9,690,378 -7.1 82.8  62,677,693  54,562,145 -12.9 74.5
Ready wear & confection   1,595,127  1,463,536 -8.2 12.5  9,422,856  8,171,846 -13.3 11.2
Automotive  2,029,746  1,975,601 -2.7 16.9  11,701,557  10,495,556 -10.3 14.3
Steel   1,063,910  832,256 -21.8 7.1  7,004,990  5,346,532 -23.7 7.3
MINING  404,038  395,516 -2.1 3.4  2,372,617  1,986,156 -16.3 2.7
Overall Exports  12,507,495  11,703,832 -6.4 100.0  79,694,902  73,261,245 -8.1 100.0
source: tim                

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