Chairman’s Message
Türkiye’s exports have broken new record in 2021 and reached USD 225.4 billion. Our country not only increased its exports but also acquired additional market share. According to the World Trade Organization, Türkiye’s share in global exports went up to 1.08% as of September 2021.
In 2021, normalcy in our daily lives was somewhat closer so long as we remained adhered to the precautions thanks to the vaccine developed against the Covid-19 pandemic and the vaccination campaigns that gained momentum. This triggered a rapid recovery in the services industry both globally and nationally, along with acceleration in industrial production. Economies encountered soaring demand as people started returning to their daily routines after a lengthy lockdown.
These developments that were enabled by the vaccination accelerated growth and international trade. International organizations estimate 5.9% growth for global economy and 9.3% expansion for global goods and services trade in 2021. During the pandemic, postponed investments failed to respond to the rapidly increased demand particularly in energy and mining industries. As a result, commodity and energy prices shot up. Furthermore, inflation went up on a global scale, stemming from both demand and supply due to interruptions in international supply chains.
The developments regarding global supply and demand we summarized above brought along discussions whether global inflation is temporary or permanent, and whether global supply chains should be replaced by regional ones.
After stating for a long time that the upturn in inflation was caused by supply-originated temporary effects, the US Federal Reserve System (the Fed) implied at the onset of 2022 that demand-side factors might be here to stay. Hence started the Fed’s remarks that it would taper and terminate asset purchases, hike policy rates, and even downsize its balance sheet. These have led to strengthening the expectations that central banks of developed countries would discontinue their expansionary monetary policies and that they might turn to tightening due to inflation concerns in 2022. This predicament, however, gives rise to the anticipation that developing countries might undertake preparations for the potential change of direction in portfolio flows.
a regional manufacturing base Türkiye is in a position to put itself forward as a powerful candidate for being a regional manufacturing base with its geographical proximity to Europe, technological and logistical infrastructure, qualified manpower, and relatively competitive investment environment.
Countries’ desire to protect their supply security due to interruptions in global supply chains promoted a regional supply chain trend. In this sense, Türkiye is in a position to put itself forward as a powerful candidate for being a regional manufacturing base with its geographical proximity to Europe, technological and logistical infrastructure, qualified manpower, and relatively competitive investment environment.
Amid the global conjuncture described above briefly, Türkiye successfully attained 11.7% growth in the first three quarters of 2021. 5.1 point of growth was contributed by net exports. For the whole year in 2021, on the other hand, Türkiye is estimated to have displayed a growth performance of 10%. On the other hand, Türkiye’s exports have broken new record in 2021 and reached USD 225.4 billion. Our country not only increased its exports but also acquired additional market share. According to the World Trade Organization, Türkiye’s share in global exports went up to 1.08% as of September 2021.
Growing export revenues is considered as the healthiest way of fulfilling our country’s need for foreign currency in a conjuncture of tightened global financial conditions. On the back of its export-oriented new economic model, Türkiye will be able to increase its exports with its competitive structure on the one hand, while targeting to become a regional manufacturing hub by prioritizing production on the other.
Amid a setting where exports gain increasing importance, Türk Eximbank, the key institution of Türkiye’s export finance, provided export support amounting to USD 46.1 billion in 2021, USD 22.5 billion thereof in loans and USD 23.6 billion in insurance/reinsurance. In 2022, Türk Eximbank targets to bring its total support volume to the order of USD 50 billion.
Murat ZAMAN
Chairman of the Board of Directors
