Turkey’s exports in May 2015 were 19% lower than for the same month last year. Exporters Assembly of Turkey has announced that exports that were $12.87 billion in May 2014, but this year have fallen to $10.82 billion. Total exports for the year are about $6 billion less than 2014. It’s now likely that the $173 billion exports goal for 2015 will not be achieved.
This is because Turkey has lost its competitiveness. So much so that although there has been a 55% devaluation in dollar parity over the past 24 months, Turkey we can’t still sell their products. Other countries applied the declining world crude oil prices to their domestic prices and lowered their energy costs by 50%. But Turkey, as it finances its budget from indirect taxes on oil and energy, did not apply lower energy prices to its domestic prices. This meant that the devaluation caused further increases in domestic prices. So, while other developing countries were increasing their exports, Turkey lost significantly.