Türkiye, strategically positioned between Europe and Asia, has its geographic advantage to become one of the most important players in global trade and increasing its potential day by day. Türkiye has got a regular growth both in exports and imports thanks to its diversified economy and trade relationships across all over the world.
In 2023, Türkiye ranked as the 11th largest economy in the world and the 4th in Europe according to Purchasing Power Parity GDP figures. (IMF) The Turkish economy grew by 4.5 % in 2023 and in the 2003-2023 period, the annual average growth rate of Türkiye was 5.4%.
Türkiye’s share in global merchandise exports was 1.07 % in 2023 with over USD 255 billion (FOB). (WTO). In the same year, Türkiye’s share in merchandise imports was 1.49% with USD 362 billion (CIF).
Türkiye’s exports and imports
Türkiye’s export performance mainly depends on automotive, machinery, textiles and food sectors which have the driving force on its economy. To achieve sustainable increase in exports Türkiye is implementing 12th Development Plan (2024-2028), which aims to strengthen macroeconomic and financial stability, promote high value-added production, achieve growth through productivity and export growth with a focus on green and digital transformation and a permanent improvement in the current account balance, improve the business and investment environment.
Thanks to Customs Union Agreement and close economic and cultural ties Türkiye’s major export market has been EU for many years. Its share in Türkiye’s total exports is 40.8% with a volume of USD 104 billion realized in 2023. Türkiye’s top 5 export markets partners in 2023 are Germany (8.2 %), USA (5.8%), Iraq (5.0%), UK (4.9%) and Italy (4.8%).
Türkiye’s imports are mainly originated from energy, raw materials and machinery needs contributing to its industrial manufacturing. In 2023 Türkiye’s major import markets has been Russia (12.6%), China (12.4%), Germany (7.9%), Switzerland (5.5%) and USA (4.4%). As Türkiye modernizes its industrial sectors additional to energy and raw materials imports of advanced and high technology products are expected to increase.
Türkiye’s share in global exports of services realized as 1.35% in 2023 and Türkiye’s share in global imports of services realized as 0.68% in the same year. (WTO). Türkiye’s services exports amounted to USD 106 billion in 2023. Türkiye’s services imports were USD 49.3 billion in 2023. Thus, the balance of services recorded a surplus of USD 56.7 billion in 2023.
Future outlook and bilateral trade
Thanks to Türkiye’s efforts to diversify its trade partners through carrying out national export strategies such as “Distant Countries Strategy”, bilateral and multilateral agreements with African, Asian and Latin American Countries and focusing on high tech industrial production, it is expected to boost its exports with the advantageous location.
In 2023 Türkiye has USD 133 million of exports and USD 103 million of imports with Sri Lanka. In the same year Sri Lanka ranked 115th in Türkiye’s export markets and 95th in its import partners. While Türkiye’s main export items to Sri Lanka are wheat flour, pulses, yeasts and gelatine, textiles, machinery and plastic and chemical products, the main import items are tea, coconut and rubber.
Although Türkiye and Sri Lanka have a modest trade volume for years, we share the common aim to further strengthen and deepen our bilateral trade relations and increase cooperation in many sectors. We are pleased to see that the Agreement on the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance has entered into force in January 2024. In the period ahead, the completion of the relevant processes of the agreements on joint economic commission and mutual promotion and protection of investments would constitute a significant development between Türkiye and Sri Lanka’s trade partnership, contributing to sustainability of relations while also focusing on diversifying and expanding the collaborated sectors such as tourism, food and agriculture, renewable energy and health.
