Automotive Exports August 2023

Türkiye eyes to surpass $120B in service
exports toward year-end
The Trade Ministry has announced that
service exports in the first four months
amounted to $25.8 billion, with a target to
surpass a total of $120 billion for the entire
year.
In a statement, the Trade Ministry
emphasized the need to bolster
and support all sectors of export,
including tourism, air, land, sea and rail
transportation, health tourism, foreign
student enrollment, informatics and
software, as well as TV series exports.
Highlighting Türkiye’s growth in service
exports over the past two decades, the
statement revealed a significant increase of
over sixfold.
Service exports, which stood at $14 billion
in 2002, witnessed a 47% surge in 2022
compared to the previous year, setting a
new record at $90.5 billion.
Consequently, the services balance of $50
billion played a pivotal role in mitigating
the current account deficit.
Türkiye’s performance in international
service exports propelled it to the 23rd
position, accounting for a 1.3% share in the
global market, according to the statement.
The statement highlighted Türkiye’s notable
achievement of registering the highest
growth rate among the top 30 exporting
countries in the world, following Spain.
With an increase of 22.6% in service
exports during the first four months of
this year, reaching $25.8 billion, Türkiye
solidified its position.
The Trade Ministry has allocated TL 774.7
million for the service sectors since the
beginning of 2023, with a total budget of TL
2.5 billion allocated for 2023.
The ministry stressed its commitment
to advancing toward these targets by
increasing investments and providing
support to sub-sectors and items that
contribute positively to the Central Bank
of the Republic of Türkiye (CBRT)’s Balance
of Payments, recognizing that innovation,
and the efficient utilization of resources are
crucial in today’s property-intensive world.
The country’s overall exporters have
achieved their best May sales ever despite
a fallout after devastating earthquakes in
early February and challenges plaguing the
global economy.
Outbound shipments rose 14.4% yearover-year
to nearly $21.7 billion (TL 453.12
billion).
Imports rose 16% year-over-year to $34.3
billion in May, the official data showed,
driving a 19% increase in the foreign trade
deficit to nearly $12.7 billion.
Low growth in the global economy and
persistent inflation have made the recovery
fragile, the ministry said at the time in
a statement. It also stressed the recent
turmoil in the financial sector, which it says
has worsened expectations.
However, it expressed optimism given the
fall in energy prices from 2022 peaks and
China’s reopening.
Türkiye is trying to emerge from
catastrophic twin quakes on Feb. 6
that killed more than 50,000 people
and flattened hundreds of thousands
of buildings besides inflicting severe
infrastructural damage.
The disaster had disrupted production and
supply chains across 11 affected provinces,
but the Trade Ministry said data showed
economic activity had recovered faster
than expected. The region accounts for
more than 20% of the country’s food
production, nearly 15% of agricultural gross
domestic product (GDP) and almost 20% of
the country’s agrifood exports.
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