According to the consolidated machinery manufacturing industry data published by the Machinery Exporters Association (MAIB), Turkey’s total machinery exports, including free zones, at the end of the first 10 months of the year, amounted to 23.4 billion dollars. Stating that they expect the ongoing global recession period to deepen further in the next six months, Machinery Exporters Association President Kutlu Karavelioğlu said: “While machinery exports are decreasing in the world, we can achieve a 10 percent export increase in the first 10 months, so we will finish the year on a positive note, no matter how the results of the last two months come. We had a promise to the public to always stay above the world average under all circumstances, whether global machinery exports were decreasing or increasing. “We are proud to keep our promise on the 100th anniversary of our Republic,” he said.
According to the consolidated data of the machinery manufacturing industry, at the end of the 10 months of the year, Turkey’s total machinery exports, including free zones, increased by 9.9 percent compared to the same period of the previous year, reaching 23.4 billion dollars. The sector, whose exports decreased by 6.6 percent on a quantity basis, increased its revenues with the effect of an 18 percent increase in the average export per KG. Kutlu Karavelioğlu, President of the Machinery Exporters’ Association, stated that after the rapid growth after the pandemic, they started to feel more the effects of the tight monetary policies that have been gradually put into effect for 1.5 years in the fight against global inflation.
“Global industrial data, which is about two months old, shows that the economic slowdown that started in the third quarter dominates the whole world. Moreover, new interest rate increases in developed countries and war conditions in the Middle East were added to these conditions. We can measure the results of these developments, which accelerated in October, more clearly when the last quarter data arrives. We will see the ongoing global recession deepen further over the next six months as global interest rates reach their highest levels in the last 25 years. Despite this, we will finish the year on a positive note, regardless of the results of the last two months, as we were able to achieve a 10 percent increase in exports in the first 10 months while machinery exports were decreasing in the world. We had a promise to the public to always stay above the world average under all circumstances, whether global machinery exports were decreasing or increasing. “We are proud to keep our promise on the 100th anniversary of our Republic.”
Europeans see Turkey as a successful example in green transformation
Pointing out that Turkey’s largest export market, the European Union countries, are the group of countries most affected by global geopolitical developments, Karavelioğlu said:
“The EU, stuck between the polarization between the USA and China, is looking for solutions that will maintain its industrial and economic dominance. The EU, which aims to increase investments, cooperation and trade with developing economies, especially African countries, requires businesses to comply with the EU Green Deal. We hope to get a good share of these funds created for the Green Deal. Because many European officials we interviewed count Turkey’s Machinists among the successful examples of the best preparation in the region. “The trust in us in the region, where recession expectations and economic contraction expectations are currently increasing, makes us hopeful for a commercial activity that is likely to start in the middle of 2024.”
Karavelioğlu stated that they are investing more in international relations to develop this potential and carrying out activities that will increase the physical presence of the sector abroad, and said, “Following the INTERLIFT 2023 fair, the world’s leading elevator and equipment event held in Augsburg last month, Germany’s largest and only elevator and equipment event was held in Berlin last month. We came together with the Purchasing and Logistics Association (BME). We told buyers about the opportunities to do business with Turkey at the event, which attracted more than a thousand participants. “We have planned November as a busy month with contacts from four branches at Blechexpo and Agritechnica fairs in Germany, Aquatech in the Netherlands, and Plast Imagen fairs in Mexico,” he said.
Global recession cannot be overcome with imports
Pointing out that the last 3-month average of the machinery foreign trade deficit has exceeded the already high last 12-month average, Karavelioğlu concluded his words as follows:
“Our Minister of Commerce, Prof. Dr. Ömer Bolat, while sharing the October foreign trade data with the public, announced that in the first 10-month period, exports of electrical and non-electrical machinery and equipment increased by 14.7 percent to 33.5 billion dollars, and imports increased by 27.4 percent to 57.4 billion dollars. In this period when recession pricing is sweeping the whole world and almost all of our competitors are developing additional measures to protect their domestic manufacturers, we find this statement of our Minister very valuable, pointing out a major problem of the medium-high and high-technology goods groups. All periods when the foreign exchange remains inactive or moves downwards despite inflation, such as the last months of July, August and September, both imported goods. It creates significant opportunities for our customers and creates serious weaknesses in our scale and global competitiveness. We do not believe that we can overcome the global recession, which will deeply affect most of the next year, by importing instead of production. “We think that taking measures other than monetary policies would be more in line with the MTP discourse and targets, in order to prevent importers from using the stagnation in the exchange rate as a discounted purchasing opportunity.”