REGIONAL REPORT
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Turkish machinery benefits
According to the Turkish Machinery Exporters Organisation , Turkey ’ s machinery exports reached US $ 25.5 billion in 2022 . The machinery sector contributed 10 per cent of Turkey ’ s total exports . It has listed the benefits of Turkey as a machinery producer below :
■ Developed engineering skills and rapid adaptation to new technologies
■ Sufficient facilities ( such as industrial zones ) and infrastructure
■ Advanced sub-industry
■ Rapid adaptation to international manufacturing standards
■ Quality awareness
■ Specialised , highly educated and skilled middle and senior managers
■ Young workforce
■ Domestic supply of raw materials
■ Flexible structure of SMEs ( most of the companies in the machine manufacturing sector in Turkey are SMEs )
■ High-level organisation of the sector
■ Geographical proximity to some of the highest growth markets in machinery .
Istanbul , Turkey . value of 1.7 billion euros ( an increase of 29 per cent compared to the previous year ). With a share of 13 per cent , Germany is the third most important trading partner for imports , behind Taiwan ( 24 per cent ) and China ( 16 per cent ). Other important supplier countries for Turkey are Japan ( 12 per cent ), South Korea ( 10 per cent ) and Italy ( 9 per cent ).
The economic outlook
“ Turkey pursued ambitious reforms and enjoyed high growth rates between 2006 and 2017 , which propelled the country to the higher reaches of upper-middle-income status and reduced poverty . Real gross domestic product ( GDP ) growth averaged 5.4 % between 2002 and 2022 , resulting in income per capita ( in real terms ) that was more than doubled over the same period . Growth was accompanied by rapid poverty reduction ; the poverty rate decreased by more than half from above 20 % in 2007 to 7.6 % in 2021 ,” said the World Bank .
“ For it to preserve and further its progress , it must navigate through significant challenges that encompass economic resilience , poverty and inclusion , and sustainability . Key among these is revitalizing economic growth in a post-COVID era marked by a challenging macroeconomic climate and a downward trend in productivity observed since the mid- 2010s . Furthermore , although economic expansion has continued , the
reduction in poverty rates has lost
Turkish Machinery ( Machinery Exporters ’ Association ) momentum since 2016 , hindered by participated in the recent SUBCON exhibition in the UK . increasing inequality ,” it added .
On the environmental front , the World Bank highlighted that Turkey ’ s industrial base and transport heavily relies on carbon-intensive processes and fossil fuels , presenting both challenges and opportunities . Lastly , Turkey ’ s distinct geographic and socioeconomic conditions significantly increase its vulnerability to the adverse effects of climate change , underscoring the imperative for comprehensive adaptation measures . Earthquakes in Turkey in 2023 caused more than 50,000 casualties , injured 107,000 people , damaged or destroyed 1.9 million housing units and displaced 3.3 million people ( of whom two million needed shelter ).
“ The country experienced robust economic expansion of 4.5 % in 2023 . However , this growth rate is expected to decrease to 3.0 % in 2024 , before picking up again in subsequent years on a stronger basis . Longstanding macro and structural challenges that undermine potential growth — including high inflation , low productivity growth , low labour force participation and employment levels , and weakening foreign direct investment — would require robust fiscal measures and ambitious
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ISMR July / August 2024 | ismr . net | 33