Turkey's machinery exports rise to 21 billion dollars

According to the statement made by the Machinery Exporters Association (MAİB), the exports of the machinery manufacturing industry reached 21 billion dollars in the January-September period of this year, including free zones.

The sector, which saw a 6.6 percent decline in exports by volume, increased its revenues due to an increase of nearly 20 percent in the average export value per kilogram. The highest volume of exports was directed to Germany, Russia, and the USA.

In the statement, MAİB President Kutlu Karavelioğlu, whose evaluations on the subject were included, stated that while the slowdown in the global economy and the sector's main export markets continues, they are pleased to have entered the final quarter by surpassing the 20 billion dollar threshold, and that they achieved this largely due to the rise in the technology classes of the machinery.

Noting that Turkey is facing an incredible test right in the middle of two wars, Karavelioğlu made the following remarks:

"While we are trying to foresee what decisions the central banks of developed countries will make and what effects these will have on economic activities and investments, unfortunately, a new war has started in our immediate geography. In an environment where rising interest rates slow down demand, which in turn limits machinery and equipment investments and leads to a global recession, it is difficult to predict what the effects of the uncertainty in the Middle East will be. We expect a renewed increase in investments to occur in the second half of 2024 within the normal flow. We have the patience for this, but of course, our primary wish is for an environment of peace to prevail among our neighbors."

"WE MUST EVALUATE THE STAGNATION AS AN ADAPTATION TO THE COMING PERIOD"

Kutlu Karavelioğlu stated that the main source of the problems in the world economy in the first three quarters was high interest rates, expensive energy, inflation, and decreasing orders in the industry, and provided the following information:

"In addition to the embargoes and trade restrictions applied due to the Russia-Ukraine war, we have managed to avoid all negative developments in the world, such as the struggle for hegemony between the USA, China, and the EU. Our current major concern is the stagnant indicators in Germany, our largest export market. We should evaluate this transition process as additional time for our adaptation to the coming period, which brings new conditions regarding sustainability."

Karavelioğlu noted that the preparations to be made this winter will be very critical to avoid bureaucratic obstacles regarding the green transition, emphasizing that there will be no compensation for time lost in this regard.

Mentioning their work on the green transition in the machinery sector and the Carbon Border Adjustment Mechanism, Karavelioğlu explained that they are pleased with the new practices implemented under the leadership of the Ministry of Trade to support exporters, but that they also need the conditions that encourage imports to be eliminated to the same extent.

Karavelioğlu stated that difficulties in accessing finance continue in Turkey as they do all over the world, and called for measures to be taken to break the import trend in the machinery sector.

News Source: 12punto