Turkey's export expectation index down in Q3

Turkey's economy minister said on Monday that the decrease in Turkey's export expectation index stemmed from concerns over the debt crisis in Europe.

Turkey's Economy Ministry made public Monday the foreign trade expectation survey for Q3 2011.

Accordingly, the export expectation index decreased 20.4 points to 122.6 in the third quarter of 2011 from 142.9 points in the second quarter.

As for imports, the import expectation index, which was 129.1 in Q2, was down 8.2 points to 120.9 in Q3.

Commenting on the figures, Turkey's Economy Minister Zafer Caglayan said the debt crisis in Europe was the biggest factor in the decrease in export expectation index.

"As there are rising concerns that the debt crisis may not be limited with Europe's small countries like Greece and Portugal but spread to the continent's biggest economies such as Italy and Spain, our exporters are also concerned that such situation may affect their export orders," Caglayan said.

Caglayan said that Turkey had conducted 57 percent of its exports to EU-member states and other European countries in January-May period of 2011.

"It looks like the situation European countries are dealing with nowadays may affect our country. Therefore, our companies reflected their concerns in the export expectation survey," the minister said.

Caglayan also noted that Turkish exports to countries in the Middle East and Africa, particularly to Libya, Tunisia and Egypt, were expected to rise in the upcoming quarter.

Moreover, the foreign trade expectation survey for Q3 also revealed that Germany, Russia and the United States were target markets for Turkish companies.

Participants listed foreign exchange rates, high cost of distribution & transportation and shrinking in total demand as their biggest problems concerning their target markets.

Meanwhile, nearly 41.6 percent of participants of the survey said that they expected export figures to increase, as 38 percent expressed hope for an increase in export orders.


/World Bulletin/