Turkish machinery sector set an export target of USD 30 billion for 2024. Kutlu Karavelioglu, President of the Machinery Exporters’ Association (MAİB), evaluating the performance of the machinery sector in 2023 to EKONOMİ daily, said that they set their export target for 2024 as USD 30 billion.
Stating that there was a 9.5 percent increase in production and 11 percent increase in investment in 2023, Kutlu Karavelioglu said that the export performance of the sector increased by 8.5 percent to USD 25.8 billion in the January-November period.
If financing opportunities improve and the sanctions against Russia do not expand, the sector sets an export target of USD 30 billion for 2024, Karavelioglu said.
The world’s machinery production decreased by 0.8 percent in 2023, and investments remained unchanged. Karavelioğlu reported that this was largely due to data from developed countries.
Europe’s imports expected to increase by 2 percent
Noting that the World Trade Organization predicts a contraction of more than 0.7 percent in European imports in 2023, Karavelioğlu said that the sector’s exports to Europe have increased. Karavelioglu stated that their optimism about the timing of the recovery has increased, considering that energy and industrial material costs have started to decrease in a way to alleviate inflationary pressure in the world at a time when interest rate hikes in the region have come to an end. Kutlu Karavelioglu stated that the available data indicate that economic vitality will begin in mid-2024 at the latest, and emphasized that Europe’s total imports are expected to increase by 2 percent by the end of 2024.
Referring to the need for the sector to continue its investments for Turkey to get its share of the new wave of orders expected to start from the third quarter in 2024, Karavelioglu said, “One factor that will shape the year 2024 will be the acceleration in green and digital transformation investments. Depending on the decisions taken at the COP 28 meetings held in Dubai in December, green transformation investments will be accelerated. In 2024, green and digital transformation investments will gain momentum as financial conditions become more favorable.”
Karavelioglu underlined that many European officials cited Turkey’s Machinery Manufacturers as one of the best examples of preparation for the Green Deal in the region, and said: “The confidence in us in the region, where expectations of recession and economic contraction are now heightened, increases our expectations for a trading activity that is likely to start in mid-2024.”
The sector expects a 6 percent increase in machinery and equipment production in 2024.
The biggest risk in export markets is geopolitical risks and related energy price increases for 2024, Karavelioglu states. “That could postpone the interest rate cuts.”