Aegean Exporters Seek Currency Rates in Response to Inflation Rates

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Aegean Exporters Seek Currency Rates in Response to Inflation Rates

The Aegean Exporters' Associations (EİB) assessed the export performance for 2024 and announced their targets for 2025, while exporters reiterated their demands for an increase in exchange rates in line with inflation rates. EİB Coordinator Chairman Jak Eskinazi stated that 2024 is a "survival year" for exporters, while describing 2025 as a "stability year" with an economic program.

EİB's exports for 2024 reached $18.4 billion with a 1% increase. Of this figure, $9.5 billion came from industrial products, $7.6 billion from agricultural products, and $1.3 billion from the mining sector. Eskinazi indicated that the 4% and 23% increases in the agricultural and mining sectors significantly contributed to the export growth in 2024.

Expansion in exports, particularly to the European Union In 2024, the Aegean Region exported to a total of 216 countries and regions, achieving an increase in exports to 111 of these. Germany, the USA, Italy, Spain, and the United Kingdom ranked among the largest markets for EİB. Exports to the European Union reached a total of $9.3 billion, making it EİB's largest export partner.

Eskinazi noted that İzmir ranks third in Turkey with $23.8 billion in exports, while statistics from the activity provinces indicated that exports from the Aegean Region reached $43 billion. However, he pointed out that high inflation, low exchange rates, and difficulties in access to financing have put pressure on exporters.

Inflation and financing challenges for exports Eskinazi emphasized that high energy prices and labor costs negatively affect the competitiveness of exporters. He stated that labor costs in Turkey have reached $1,500, making it challenging to compete with countries where this figure is around $200-300. Eskinazi called for more effective use of renewable energy sources and noted that legislative gaps hinder progress in this area.

Other EİB presidents also shared their 2024 performance and expectations for 2025 on a sectoral basis. Exporters in sectors such as textiles, leather, fresh fruits and vegetables, mining, and seafood expressed the need for stronger support and access to financing in the face of rising costs and global economic fluctuations.

Targets for 2025 and proposed solutions To achieve the export target set at $279.6 billion for 2025, Aegean exporters are focusing on various projects and support requests. Innovative production models, increasing the use of renewable energy, facilitating access to export credits, and aiming to open new markets are at the center of exporters' strategic plans.

Eskinazi stated that if production costs in Turkey are reduced and the financing burden is alleviated, export targets could become more realistic. He declared that EİB will continue to prioritize sustainable production and the search for new markets in 2025 as well.