ISMR July / August 2023 | Page 34

been losing momentum amidst a deteriorating external environment and heterodox monetary policies . The earthquakes added pressures to an increasingly fragile macro-financial situation . Pre-election spending and reconstruction efforts are expected to support growth , which is forecast at 3.2 per cent in 2023 and 4.3 per cent in 2024 ,” said the World Bank in April this year .

Trade and industry

The country has a youthful population ( with almost half being under 32 years old ). Turkey also has a strong industrial base , particularly for metalworking and machine tools . It offers a skilled workforce , generous investment incentives , an innovation-oriented infrastructure ( with continuous R & D ) and a strong supply base ( including domestic clusters ).

Turkey is home to many global suppliers . There are more than 250 global suppliers that use Turkey as a production base , with 28 of them ranking among the 50 largest global suppliers . Its automotive industry has undergone rapid industrialisation with design capability and huge production capacity . In the supply chain , over 1000 component suppliers support OEM production . Automotive OEMs with production facilities in Turkey include Fiat ; Citroen ; Renault ; Ford ; Hyundai ; İsuzu and Honda .

Around two-thirds of Turkey ’ s total exports is to countries that are relatively close to Turkey . The country ’ s ‘ Faraway Countries ’ strategy aims to evaluate faraway countries ’ commercial and economic cooperation potential and to ensure sustainable increases in Turkish exports .

Turkey also boasts several Free Zones with tax advantages for manufacturers ; a medium-and long-term investment view ; commercial facilities ; the flexibility to adjust to market needs and conditions as well as reduced bureaucratic procedures and supply-chain opportunities . These specialised areas were set up to increase Turkey ’ s share of R & D and encourage high-technology production from overseas manufacturers . For example , the Bursa Free Zone specialises in automotive sub-industries .

Turkish Machinery stand at Hannover Messe in Germany this April .

“ Turkey became the sixth-largest machine manufacturer in Europe , ranked 27th in the global machinery trade in 2020 . In recent years , growth rates of the Turkish machinery industry are much higher than the growth rates of Turkey ’ s overall economy . With its rapid development and potential , the Turkish machinery industry is increasing its share of Turkish exports and is the second-largest sector in the country ’ s total exports . Moreover , approximately 60 % of Turkish machinery export is directed to the EU and the USA ,” confirmed the Turkish Ministry of Trade in its May 2023 Economic Outlook .

Particular strengths include laser processing machine tools , forging and punching machine tools ( including presses ) which , in 2018 , accounted for 80 % of its exports in this category . Exports reached US $ 855 million in 2018 ( 30 % growth ) with the industry diversifying its export markets to USA , Canada , Mexico , Brazil and India . The automotive , white goods , aviation and healthcare sectors ( among others ) are well represented in Turkey .

MACROECONOMIC OUTLOOK

REPUBLIC OF TÜRKİYE MINISTRY OF TRADE

Digitalization & Trade Facilitation

Trade Diplomacy & New Exporters

Technology Oriented New Free Zones

Finance of Exports ( EXIMBANK Products )

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