THE PANORAMA OF FOREIGN TRADE IN 2021

Turkey’s exports rose by 32.9% to

USD 225.4bn, breaking records since the historic 33.7% hike in 2004. The base effect contributed to the surge, as exports annually dropped by 6.2% in 2020. Imports also annually surged by 23.6%. But the base effect limited the rise, as imports rose by only 4.4%. The overall export unit value index increased by 8.29% while the overall import unit value index rose by 17.8% in 2021 as compared to 2020. The price hike in exports was limited given that the currency basket increased by 47% on an annual basis. The overall export volume index surged by 17.8% while the overall import volume index increased by 0.5%. The terms of trade, which stood at 99.7 on a 12-month simple average, fell by 8.2 points to 91.5 in 2021. No contribution was made to exports by value-added. The share of high technology products in manufactured goods fell from 3.43% to 2.97% in 2021, compared to 2020. Turkey’s exports rose in a relative sense due to the fact that is was able to provide goods and services that could not be provided by China due to problems such as freight and the supply crisis. The surge mostly stemmed from sales of a higher number of products at cheaper prices. Turkey should focus on permanent achievements in order to achieve a structural transformation in manufacturing and foreign trade.