Turkey heralds new export record, but trade deficit still $45.9 bn!

Turkey’s total exports increased by 32.9 percent year on year and amounted to 225.368 billion U.S. dollars in 2021, Turkish President Recep Tayyip Erdogan announced Monday.

 

Speaking at a press conference in the county’s financial hub Istanbul, Erdogan said Turkey also increased its foreign trade volume to 496.7 billion dollars last year, from 87.6 billion dollars in 2002.

 

 

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“We have reached the highest export value in the history of the Republic in the product group of 75 chapters,” he noted, adding that his country revised its export target in 2022 to 250 billion dollars.

 

The Turkish leader said Turkey’s exports increased by 86.6 percent to South America, 33 percent to the European Union (EU), 29 percent to non-EU European countries, 22.6 percent to the Near and Middle East, and 44.8 percent to North Africa.

 

Meanwhile, Turkey’s foreign trade deficit fell 7.8 percent year on year to 45.9 billion dollars in 2021, according to the president.

 

Erdogan earlier said the government’s new economic plan focused on investment, production, and export surplus.

 

Presdient Erdogan doesn’t understand that export growth will beget more imports, because the imported input component of exports is estimated at between 20-35%.

 

He does however, perfectly understand how to fleece the goose which lays golden eggs. Central Bank of Turkey (CBRT) announced on Monday that exporters will have to sell 25% of their hard-currency receipts to CBRT at the official exchange rate.

 

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Published By: Atilla Yeşilada

GlobalSource Partners’ Turkey Country Analyst Atilla Yesilada is the country’s leading political analyst and commentator. He is known throughout the finance and political science world for his thorough and outspoken coverage of Turkey’s political and financial developments. In addition to his extensive writing schedule, he is often called upon to provide his political expertise on major radio and television channels. Based in Istanbul, Atilla is co-founder of the information platform Istanbul Analytics and is one of GlobalSource’s local partners in Turkey. In addition to his consulting work and speaking engagements throughout the US, Europe and the Middle East, he writes regular columns for Turkey’s leading financial websites VATAN and www.paraanaliz.com and has contributed to the financial daily Referans and the liberal daily Radikal.