Omer Bolat, Minister of Commerce, Turkey, says, textile and raw materials exports from the country surged by 6 per cent to over $1.5 billion during the months of January and February, 2024. They hope to surpass the 2023 total of $33 billion textile and raw materials exports this year,
Despite a slight decline in garment exports, Bolat expects a turnaround as European and American demand rises. The government is actively supporting the industry through various initiatives.
Recognising the importance of environmental compliance, Bolat emphasised the need for adherence to the ‘Green Deal’ for exports to the EU. The Ministry is offering consultancy services to companies undertaking Green Deal compliance projects, covering up to 10 million lira of the expense.
Bolat highlighted existing benefits for exporters, including corporate tax advantages, financing through Türk Eximbank, and revamped Turquality promotion programs. These programs offer brand and marketing support, with additional extensions for earthquake-affected textile regions.
Further, Bolat emphasised Turkey's continued strength as a production and supply base. He pointed to the country's success during the pandemic, highlighting its ability to deliver high-quality products within a short timeframe. Turkey achieved a national income of $1.119 trillion in 2023, exceeding the $1 trillion threshold for the first time. Bolat also noted a rise in the national income per capita and a decrease in the unemployment rate.
Bolat highlighted positive manufacturing indicators, including a Purchasing Managers' Index (PMI) exceeding 50 for the first time in 8 months. This signifies expansion in the manufacturing sector. Additionally, the capacity utilisation rate for manufacturing reached 77 per cent in February, and industrial production increased for the first time in 5 months.Bolat reported a rise in employment by 913 thousand people in 2023, reaching 32.1 million. The youth unemployment rate also decreased to a record low of 15.5 per cent, while the youth employment rate rose to 53.1 per cent.
Bolat highlighted a decline in imports and a rise in the export-to-import ratio to 75 per cent. This resulted in a significant decrease in the foreign trade deficit, dropping by $9 billion in just two months. Bolat attributes this improvement to reduced foreign currency needs, achieved by closing the trade and current account deficits.
