Export Import Business In Turkey

Turkey’s economy ranked fifteenth among the largest economies of the world that is now facing the difficult conditions because of the global recession after experiencing a boom for six successive years. In a present day scenario, many of the major economic sectors of Turkey appear fragile. It needs foreign investment to keep flowing in order to maintain its economic progress. Slow down in economic growth has been observed in recent years and inflation has started to climb up again. 10% inflation was recorded in 2007.

The major problem it faces today is the declining figures of its exports to European countries. The industry exports fell by almost 25% in December, 2005 and the further decline in demand hit the exporters badly in the year 2008. The trade deficit for the year 2008 is -31%.

Turkey has diversified its economy over the recent decades. It encouraged the formation of many modern industries that are actively involved in exports. Industries in Turkey are focusing more on exports than most other countries of Middle East, but still lag far behind their counterparts in European countries. Industries share of the GNP stands at 30%. The major industrial sectors are clothing and textiles. Modern industries like electronics and automotive industries are gaining rapidly in Turkey. Agricultural products and fishing are other major products that Turkey exports but still lot work is needed to be done, especially in the field of agriculture, in order to get at par with European countries.

Major products exported from Turkey include cotton, textiles and clothing, iron and steel, mineral fuels and oils, pearls and precious stones, foodstuff, glass and tobacco. The major export partners for Turkey are United States of America, Germany, France, Italy and United Kingdom.

The major import products for Turkey are electrical machinery and equipment, machinery, mechanical appliances, optical instruments, photographic instructions, iron and steel, aircraft and related products, and pharmaceutical products. The major countries from which most of the products are imported by Turkey include United States of America, Russia, Germany, Italy, France, Switzerland and United Kingdom.

To counter the effects of global crises and declining exports to its traditional trade partners, Turkey has started to explore new and alternative markets. Exports to countries in Africa, Middle East and Central Asia have increased considerably over the recent years. Trade with Organization of Islamic Countries (OIC) increased from US$ 38.1 billion in November, 2007 to US$ 58.2 billion in the same month in 2008, a jump by 52%. The foreign direct investments from the countries located in the Gulf Region and Middle East increased from US$ 495 million during the period January to October in 2007 to US$ 1.9 billion in 2008. Additionally, 471 new companies were establishing by the entrepreneurs from Middle East. Exports to Iraq also increased by 75% in the first two months of 2009 compared with the figures recorded over the same period in 2008. Exports to Africa reached to US$ 9 billion in 2008 from US$ 2.5 billion in 2005. Turkey’s exports are expected to reach over US$ 100 billion in 2009. Turkey expects an economic slowdown will continue throughout the 2009, after which business volume will begin to increase again.