Turkey's exports attained a record high in 2024, President Recep Tayyip Erdoğan declared on Friday, highlighting this accomplishment amidst a challenging year marked by regional instability and protectionist policies that adversely affected global trade.
"Our goods exports for 2024 increased by 2.5% compared to 2023, reaching $262 billion," Erdoğan told an event in Istanbul to announce the preliminary trade figures. "We achieved a record in export figures throughout the year."
That marks a fourth straight annual peak that was up from $255.8 billion in 2023. Imports dropped by 4.9% year-over-year to $344.1 billion last year, said Erdoğan.
This accomplishment was achieved despite significant headwinds, including global economic uncertainty and weakening demand in several key export markets, notably the European Union.
"We have endured a painful and turbulent year filled with regional uncertainties. Protectionist measures continued to adversely affect global trade last year. The fight against inflation, which has not yet reached the desired levels, marked the past year worldwide," Erdoğan said.
2025 may be 'relatively better'
Still, he expressed optimism, saying: "We expect a relatively better year in 2025."
While some positive indicators emerged at the start of the new year, President Erdoğan stressed the importance of proceeding cautiously. He identified the negative economic forecast for Germany, the eurozone's largest economy, as a substantial risk factor for the entire region.
"We will work to minimize this risk. Although global trade in goods and services is showing positive signals for 2025, unresolved geopolitical tensions necessitate more cautious actions. We will strive to minimize risks by finding new markets and trade partners," he noted.
Trade gap shrinks
Turkey's trade deficit decreased by 22.7% year-over-year in 2023, reaching $82.2 billion compared to $106.3 billion in the previous year. A $24 billion reduction in the trade deficit was achieved in 2024, according to President Erdoğan.
Furthermore, the export-to-import coverage ratio improved by 5.5 percentage points, reaching 76.1% last year.. "This ratio was only around 50% when we took office in 2002."
Exports achieved a record high for December, as reported by the president, increasing by 2.2% compared to the previous year, totaling $23.5 billion. Meanwhile, imports saw an increase of 11.1% year-over-year, reaching $33.1 billion.
Erdoğan further indicated that the current account deficit is projected to decline to between $10 billion and $11 billion by the end of 2024, representing less than 1% of GDP.
Growth, inflation, employment
President Erdoğan commended the government's medium-term economic plan and highlighted the Turkish economy's sustained growth over seventeen consecutive quarters.
"Our economy grew by 2.1% in the third quarter. This brought our growth to 3.2% for the first nine months," said the president.
The government anticipates a 4% growth in 2025, driven by exports and fixed capital investments, he stated. As of the third quarter, the national income has reached $1.26 trillion. He projected that the per capita income, which was $13,243 in 2023, is expected to exceed $15,000 in 2024 and surpass $17,000 in 2025.
Erdoğan highlighted a notable rise in employment, with over a million new jobs created in the past year, bringing the total number of employed individuals to a record high of 32.97 million as of October.
The unemployment rate has decreased to 8.8%, the lowest level in 23 years, from January to October.
He also mentioned the progress made in combating inflation, as recent official data revealed that consumer prices declined more than anticipated in December, concluding 2024 at approximately 44.4% on an annual basis.
This December figure represents the lowest inflation rate since June 2023 and aligns with the central bank's year-end target of 44%.
The central bank has maintained its main interest rate at 50% since March and initiated an easing cycle last week, reducing the policy rate by 250 basis points to 47.5%. The tightening of policy began in mid-2023, with the last rate cut occurring in February 2023.
Erdoğan remarked that Friday's data "validates our strategies" and expressed optimism that inflation will further decrease in 2025, in accordance with official projections. The central bank anticipates inflation to drop to 21% by the end of this year.
"The markets trust our government and our program," Erdoğan said.