Relations between Turkey and Germany goes far beyond the classic trade relations between two countries. Both the weight of the Turkish-origin population in Germany and the close historical and cultural relations between the two countries is drawing a new perspective for trade between the two countries. Largest economy in the European Union (EU) and the country in leading position, Germany is the main export market for Turkey, especially in the textile and ready-to-wear. A report prepared by İTKİB reveals the point and the potential of the textile and ready-to-wear trade between the two countries. In the light of all data, it is clearly seen that Germany is not just an export market, but a partner for the Turkish economy.
With its population exceeding 83 million and more than 4 trillion dollars of gross domestic product (GDP), Germany is the biggest economic power of Europe. The country, which achieved an average annual economic growth of between 1.5 and 2 percent, became the third largest importer of the world in 2018 with an import of 1.3 trillion dollars. On the other hand, it is the largest exporter in the world with its 1.55 billion dollars export. Having an advanced industrial structure, financial system and global brands, Germany is among the actors that shape the world economy with this power.
Germany export to USA while import from China
With 134 billion dollars, the USA comes first among the markets that Germany exported most in 2018. The second place go to France with 124 billion dollars. China is the third biggest market with a value of 110 billion dollars. Turkey ranks 18th in total exports of Germany. In 2018, Germany’s export to Turkey was 22.7 billion dollars.
Looking at the import figures of Germany in the same period, it is seen that the biggest importer country is China with 125 billion dollars. The second importing country was the Netherlands with 105 billion dollars. Turkey ranks 17th in Germany’s total imports. Turkey has a 1.5% share with 19.3 billion in imports.
Textile exports and imports of Germany increase
In 2018, total textile and raw materials exports of Germany increased by 5.3% to 14.1 billion dollars and imports increased by 4.5% to 14 billion dollars.
The country where Germany exports the most textile and raw materials was Poland with a share of 9.3%. The value of exports to Poland was 1.4 billion dollars. Austria is the second most important export market with a share of 6.5% and a value of about 1 billion dollars. Germany’s textile exports in Turkey ranks 15th. In 2018, Germany made 363 million dollars’ worth of textile exports to Turkey.
When we look at the textile imports of Germany, it is seen that the biggest supplier in 2018 was China with a share of 17.8% and a size of 2.5 billion dollars. Italy became the second biggest importer with 10.5% share and 1.5 billion dollars. Number 3 in Germany’s textile imports is Turkey with 6.9% share. Turkey increased exports of Germany in 2018 to approximately 1 billion dollars, increasing it by 0.7%.
Trade between Turkey and Germany maintains its vitality
Turkey’s exports to Germany in 2019 was valued at 15 billion dollars, decreasing by 5.4%. Automotive industry ranked first with a share of 29.2% and 4.3 billion dollars in terms of sectors. In the second place, the textile and ready-to-wear sectors are together. The share of these two sectors in exports was 23.1% and the total value was approximately 3.5 billion dollars. Compared to 2018, it is seen that textile and ready-to-wear exports decreased by 5%. In 2019, 856 million dollars of exports were made to Germany, which is our biggest textile and raw materials market.
Turkey’s imports from Germany decreased by 13.7% in January-November 2019 and were valued at 16.1 billion dollars. Boilers, machinery, mechanical devices and tools are in the first place (3.3 billion dollars) with 20.3% amongst the imported products. The second imported product group was composed of motor vehicles, tractors, bicycles, motorcycles and other land vehicles and their parts and accessories (2.1 billion dollars).
Textile imports decreased more in 2019 than exports
Turkey’s exports of textiles and raw materials to Germany decreased by 2% and valued at 856 million dollars in 2019. Home textiles and technical textiles make up most of this export. While exports of home textiles increased by 6% to 427 million dollars; exports of technical textiles decreased by 14.4% to 140 million dollars. In addition, 125 million dollars of exports in woven fabric; 79 million dollars in yarn, 48 million dollars in knitted fabric and 44 million dollars in fibre exports were realized.
Imports of textiles and raw materials from Germany decreased by 19.5% last year to 277 million dollars. Fibre was the most important product group in imports. Fibre imports decreased by 25.3% to 115 million dollars in the first 11 months of 2019. The value of technical textiles on the second row of imports was 110 million dollars, down by 13.4%.