Turkey's exports rise in June

By Sumeyye Dalkilinc and Kerem Kocalar

GAZIANTEP, Turkey

The value of Turkey's exports rose 1.8 percent year-a-year to $12.7 billion in June, the country’s main exporters’ association said on Saturday.

The Turkish Exporters' Assembly (TIM) said exports in the first half of the year also climbed 8.2 percent to reach almost $76.4 billion.

Turkey's total exports in the last 12-month period rose 4.5 percent compared to the previous 12 months to stand at $147.3 billion.

In June, the automotive sector contributed the highest exports with $2.5 billion, up 16.4 percent over the same month last year.

It was followed by the clothing and chemical sectors with $1.4 billion and $1.3 billion, respectively.

The highest increase among industrial products was seen in ship and yacht sector exports with a 178 percent rise, TIM said.

Another prominent rising export sector in June was the olive and olive oil sector, up 63 percent.

Exports to Russia balloon

Among the top 20 destinations for Turkey’s exports, Russia saw the sharpest rise, 89 percent, due to a fivefold increase of fresh fruit and vegetable exports, according to TIM.

Exports to Turkey’s main trading partner, the EU, rose 2.8 percent month-on-month in June, making its share of the country's total exports 50.5 percent, the association said.

Turkey's exports to its second-biggest trading partner, North America, jumped 17.8 percent in the month compared to June 2016.

Exports to Turkey’s other main export markets were also on the rise -- Germany (up 4.4 percent), the U.K. (up 2.1 percent), Italy (up 1.8 percent), the U.S. (up 14.1 percent), and Iraq (up 4.4 percent).

Speaking at a press conference on Saturday, Deputy Prime Minister Mehmet Simsek stated that Turkey can escape from the middle-income trap, in which a country's growth slows after reaching middle-income levels, by following a pattern of growth based on exports.

"The solution to the middle-income trap is exports. There is no other formula," he stressed.

Simsek stated that mobilization for exports needs to be maintained and added:

"Export is a must for better-balanced growth. Growth based solely on domestic demands has limits. For this reason, we should continue pushing our exports."

Turkey needs to export for well-balanced, sustainable, and higher growth, and also escape the middle-income trap, Simsek said.

Commenting on the new figures, TIM head Mehmet Buyukeksi said the limited rise in June exports was due to the smaller number of working days due to the Muslim Eid al-Fitr holiday compared to the same period last year.

Buyukeksi said Turkey saw a strong recovery in exports in the first five months of the year, which has helped the country's growth rate.

In the first five months, Turkey's exports rose 9.5 percent to $64.3 billion compared to the same period last year, according to the Turkish Statistical Institute.

"We believe that we will reach higher growth rates with the contribution of exports in the coming periods," Buyukeksi underlined.