In 2023, global economic growth was below the long-term average.
In 2023, global economy failed to match its long-term average and remained below it with a rate of 3.2, while decoupling was observed between regions and sectors. Tight financial conditions, increased geopolitical tensions, barriers to international trade and structural changes in the supply chain repressed global trade and growth.
Global growth will presumably remain flat in the period ahead due to relatively tighter monetary policies, less supportive fiscal policies and reduced productivity resulting from structural issues. Notwithstanding, growth outlook for our main trade partners is improving.
Türkiye’s economy displayed a strong growth performance in 2023.
National economy expanded by 4.5% in 2023 despite the earthquake disaster, weakened export markets and loss of momentum in global trade. One third of growth stemmed from machinery and equipment investments.
National income at current prices crossed the USD 1 trillion-threshold in 2023 with per capita income standing at USD 13 thousand 110.
The economy program implemented with a strict anti-inflationary focus from the second half of 2023 triggered rebalancing of domestic demand and net export’s negative contribution to growth lessened.
Solid growth outlook reflected on the labor market. Unemployment rate in 2023 stepped down to 9.4%, the lowest of the past decade.
At USD 255.4 billion, exports broke the record of the Republic era in spite of weak external demand and the earthquake. Underpinning this achievement was our product and market diversification strategy. As the number of our export destinations reached 50 and that of export products 54 in 2023, the share of our exports in the world rose to 1.07%.
In 2023, our services revenues topped USD 100 billion as tourism revenues reached USD 56 billion.
The current deficit dropped significantly in the second half of the year thanks to steps for economic rebalancing, and ended the year at the order of USD 45 billion.
In line with the program, we are envisaging that the rebalancing of the economy will get stronger, net exports will lend positive contribution to growth, current deficit will keep improving and inflation will fall.
We achieved major progress in several areas over the course of the past 21 years and our country has the potential to attain much more. Türkiye is a regional and global manufacturing hub with its investment environment, start-ups, well-trained human resource, advanced infrastructure and geopolitical location.
In the Century of Türkiye, we are targeting to increase our country’s potential in this respect, to climb up in global value chains and increase our share in exports on the back of structural reforms that will increase productivity and competitiveness and accelerate twin transition.
We are attaching importance to increasing the financial strength of our Bank as we aspire to extend stronger support to our exporters. We are diversifying our funding through bond issues, loan agreements and syndicated loans.
Türk Eximbank, which targets healthy and sustainable growth, authored successful results in financial and operational terms in 2023.
The capital raise for the total amount of TL 21.9 billion by the Ministry of Treasury and Finance not only strengthened our Bank’s capitalization, but also enables increased loan support to all our exporters and particularly to the SMEs.
Moreover, daily rediscount loan limit was increased by ten folds from TL 300 million to TL 3 billion with the aim of giving exporters improved access to financing.
In 2023, our Bank’s shareholders’ equity grew by 79% to TL 42.4 billion. Net lending was up by 69% to TL 516.3 billion, putting our Bank in the 9th place in the banking industry in terms of lending size.
Credit, insurance and guarantee support provided by Türk Eximbank in 2023 added up to USD 42 billion, which is targeted to be further brought up to USD 50 billion in 2024.
We carry on with our sustainability and climate action efforts.
Climate action and sustainability are two issues with an ever-growing importance. At Türk Eximbank, we are reviewing our business models in these areas and revising our implementations as necessary.
We are supporting climate action and low carbon transition to step up sustainability and our exporters’ competitive strength on the international arena. In 2024, we are aiming to extend support to investments for compliance with the Carbon Border Adjustment Mechanism with sustainability-themed funds.
In addition, we will carry on with financing support to high technology and value-added exports by prioritizing digital transformation. Our support to the SMEs and women entrepreneurs will continue uninterruptedly also in the period ahead.
We continue to proudly serve our country in the new century of our Republic.
The successful results we have attained in 2023 when we joyfully celebrated the centennial of our Republic attest to the correctness of our roadmap.
Being the officially-supported export credit agency, we will resolutely carry on with our activities for the welfare and stability of our country, drawing on our vision , our targets aligned with our country’s export strategies, our corporate culture and experience.
In addition to the products, services and practices that reflect our dynamic structure, we will keep supporting increased productivity and added value in exports with employee and exporter satisfaction.
As we walk down this path that lead to our targets, I would like to thank our employees for their endless efforts and contributions, our business partners for their unyielding support, and our exporters.
Osman ÇELİK
Chairman of the Board of Directors
