Turkey’s exports rose 11.3 percent in 2010 compared to the previous year, to $113.69 billion, according to data released by the Turkish Exporters’ Assembly, or TIM, on Monday. The figure is above the government’s 2010 target of $111.7 billion.

Releasing the data to reporters in Ankara, TIM said exports in December rose 21.3 percent compared to December 2009, to $11.56 billion. The figure was the highest monthly export figure for 2010, Anatolia news agency reported.

TIM’s press conference was attended by its head, Mehmet Buyukeksi, as well as State Minister Zafer Caglayan and Foreign Trade Undersecretary Ahmet Yakici. Speaking to reporters, Caglayan said Turkey’s potential is “similar to a 300-horsepower car that speeds up to 300 kilometers per hour, but one that needs a convenient highway.”

Buyukeksi, meanwhile, put an export target of $127 billion for this year.

Turkey’s exports broke a record in the pre-global crisis period, rising to $132 billion. The crisis was most felt in 2009, but the economy managed to keep exports above $100 billion.

“Our exporters have reached these figures despite a euro/dollar level of 1.20 and a year in which the U.S. dollar sometimes traded below 1.4 Turkish Liras,” Buyukeksi said. “For 2011, we foresee a [gross domestic product] growth of around 5-6 percent.”

The driving force of exports was the automotive sector, as car exports rose 16 percent on an annual basis to $17.38 billion. The textile sector posted an annual export rise of 10 percent, accounting for $14.64 billion. The third best performer was the chemicals sector, as its exports surged 32 percent to $12.72 billion.

Agricultural sectors accounted for 13.4 percent of overall exports, while industrial sectors accounted for 82.3 percent and mining for 3.22 percent.

Anatolian tigers roaring

Buyukeksi said Kocaeli, an industrial province neighboring Istanbul, increased exports 31 percent in the past year. Exports from Denizli rose 23 percent, while those from the southern city of Hatay increased 20 percent. “The exports of 14 provinces have surpassed $1 billion. This is very important and shows that the trend of exports has taken hold in Anatolia.”

The figures show that neighboring Iraq has become Turkey’s fifth-largest export destination following Germany, the U.K., Italy and France. Germany’s share in overall exports is 10.2 percent, followed by the U.K. with 6.2 percent and Italy with 5.8 percent. Exports to “alternative markets” – United Arab Emirates, Iraq, Iran, Egypt, Libya, Saudi Arabia, China, Syria and Azerbaijan – constituted 21.5 percent of all exports.

Iraq, which imported more than $6 billion in goods and services from Turkey last year, is “of strategic importance” for Turkey, according to Büyükekşi, who said exports to the country rose 18 percent on an annual basis.

Exports to “unusual” markets also showed stronger performance, as foreign sales to Argentina surged 143 percent while those to Singapore increased 68 percent. Exports to Malaysia, Brazil, Mexico, Bahrain and India also rose.

Büyükekşi praised recent Central Bank action against short-term capital inflows, predicting that the bank will decrease its main one-week borrowing rate to 5 percent before March, from the current 6.5 percent.

State Minister Caglayan, meanwhile, said Turkey stands as the seventh country in imports to the European Union. “Our exporters are working, not talking,” he said, adding that the December export figure is the highest monthly figure in the past 27 months.

“The data show the increase in exports will continue,” Caglayan said, pointing out the government’s 2023 target of $500 billion in annual exports.

A road for a fast car

Turkey’s economic potential is similar to “a 300-horsepower, 300-kilometer-per-hour car,” according to Çağlayan. “The important thing is to construct the highway for this car,” he said.

The minister pointed to a rise in exports to the BRIC economies – Brazil, Russia, India and China. “Exports to China increased 51 percent to $2 billion, while exports to India, Russia and Brazil rose 41.2, 43.1 and 63.9 percent, respectively.”

Caglayan also said 48.2 percent of exports were conducted in euros and 45.2 percent in U.S. dollars.

“In 2002, the number of Turkish exporter companies was at 31,719,” he said. “In 2010, the figure rose to 48,694. A total of 1,415 companies had export volumes of over $1 million, while 104 of these had export volumes above $100 million.”

Responding to a question over a perceived dependence on imports of intermediary goods, Caglayan said the “overvalued Turkish currency” is the reason for this phenomenon.

Responding to another question on his harsh criticism of the Central Bank, Caglayan said he was not seeking a guilty party, but repeated his view that if the bank had taken precautions earlier, the foreign trade deficit would not have raised so sharply.

http://www.hurriyetdailynews.com/n.php?n=turkish-exports-hit-113-billion-in-2010-2011-01-03