Export and Cost Assessment from Economist Bader Arslan

Economist Dr. Bader Arslan evaluated Turkey's foreign trade performance and cost increases in industry during his appearance on Bloomberg HT, drawing attention to the position in the European Union market and rising production costs.

While imports continue to grow in the European Union, Turkey's main foreign trade market, the share Turkish industry receives from this growth remains limited. Economist Dr. Bader Arslan, sharing figures regarding Turkey's position in foreign markets based on EU import data during the Economic Outlook program broadcast on Bloomberg HT with Hakan Güldağ, stated that in 16 of the top 20 sectors where Turkey exports to the EU, the growth rate of the union's imports from the world outpaced the growth rate of imports from Turkey.

Stating that the EU's total imports increased by 11 percent in 2026, Arslan noted that imports from China rose by 16 percent, imports from the US by 10 percent, while the increase in imports from Turkey remained at 2.9 percent. In the motor land vehicles sector, one of the key items, while the EU's imports from the world recorded a 10.4 percent increase, the increase in imports from Turkey remained limited to 4.2 percent.

Touching upon the increases in production costs, Arslan referred to the report by Turkish Exporters Assembly (TIM) President Mustafa Gültepe, noting that since 2019, the minimum wage has increased by 1,290 percent, raw material and intermediate goods costs by 1,250 percent, energy costs by 1,490 percent, while the increase in the US dollar exchange rate remained at 860 percent. Stating that production costs across Turkey have risen by an average of 55 percent in dollar terms, Arslan noted that this rate is 60 percent in the machinery sector, 58 percent in apparel, and 55 percent in furniture. Emphasizing that export unit prices being at historical highs stem from cost necessities rather than branding, Arslan warned that companies unable to make a profit cannot invest, and this situation could lead to a new bottleneck in the future due to a technology gap.