Konya is Gaining Worldwide Fame in the Footwear and Leather Industry

Valuable representatives of our leather and footwear industry;

Under the leadership of our President, Mr. Recep Tayyip Erdoğan, Turkey has made significant progress in every field over the past 22 years, particularly in investment, production, employment, and exports. In 2002, our country’s Gross Domestic Product (GDP) was at the level of $232 billion. Today, our GDP has risen to $1.2 trillion. Undoubtedly, from the very first day, the AK Party governments have placed great importance on investment, production, employment, and exports. As a result, our country has continued its path with strong economic growth, despite the conflicts, wars, and crises in our region, as well as the challenges and uncertainties that began with the pandemic. Furthermore, Turkey is enhancing its competitive power in the global arena every day.

Today, Turkey is a key player, capable of producing and delivering products to 200 countries worldwide. Our exporters are strengthening their position in the global trade market with the strong commercial networks they have established from east to west, north to south, and as a result, our country is increasing its global market share. The data from September 2024 and the first nine months of the year also demonstrate that our country is maintaining a balance in foreign trade and current account transactions, rapidly reducing trade and current account deficits while continuing its economic growth.

As the government, our most important and primary goal is to establish sustainable and balanced foreign trade. As the Ministry of Trade, we also place great importance on the existence of a fair, transparent, and sustainable commercial system in collaboration with our stakeholders, and we continue our work in this regard. The government’s determination and the strong policies it has implemented are being recognized internationally, and the announced

data reveal that our policies are producing positive results. The most recent data we have announced also support these policies. Indeed, while our exports continued to grow in the first nine months of 2024 and on an annualized basis, our imports are decreasing, and the foreign trade deficit continues to shrink. Our country’s economy achieved 3.8% growth in the first half of 2024, with goods and services exports contributing 1.4 percentage points to this growth. In line with this, our main goal is to make economic growth, employment increases, and macroeconomic stability visible.

In the first nine months of 2024, our exports increased by 3.2% to $192.8 billion, while our annualized exports rose by 3.4% to $261.6 billion. In this context, the annualized export-to-import ratio also increased to 76.9%. The downward trend in our imports continues as well, and in the first nine months of 2024, imports decreased by 7.9% to $252.9 billion. Our annualized imports also fell by 7.3% to $340.3 billion. As a result, our foreign trade deficit is steadily shrinking. Accordingly, in the first nine months of 2024, our foreign trade deficit decreased by 31.5% to $60.1 billion, and the annualized foreign trade deficit fell by $35 billion to $78.7 billion.

The improvement in our current account deficit has continued uninterrupted in 2024. Our current account deficit, which was $57 billion in May 2023, decreased to $19.1 billion as of July 2024, dropping below the $20 billion level for the first time since April 2022.

As these results show, our country is on the right track in economic and trade fields. Despite the rising tensions and uncertainties in our region, we are determined to continue implementing our policies and to position Turkey strongly. At this point, as the Ministry of Trade, we will continue to collaborate with and support the representatives of our sector. One of the key sectors is our leather and footwear industry, which stands out in terms of production, employment, branding, and exports. The leather and footwear sector not only provides fashion and aesthetic value but also serves as a key driving force for our national economy.

The sector provides employment for hundreds of thousands of people directly and indirectly, from raw leather processing to production, design, and sales. The industry covers a wide value chain, from leather processing plants to shoe factories, retail outlets, and logistics services. Our country, with its deep-rooted history in leather production and processing, continues to grow through the access of our domestic producers to different markets. As one of Turkey’s value-added sectors, the leather and leather goods industry has become increasingly important for the national economy due to its contributions to employment and exports.

Our exports in the leather and leather goods sector saw an approximate 13% increase in unit export prices in 2023, despitea5.8%decrease,reaching$2.11billion.Accordingto the data for January-September 2024, exports amounted to $1.49 billion, showing a 9.6% decrease compared to $1.65 billion in the same period of the previous year. The shoe sector, which constitutes the largest share of the sector’s exports, increased by 21% in 2022, reaching $1.31 billion. Although there was a slight contraction in 2023 (a 3.2% decline, bringing exports to $1.27 billion), the 20% increase in unit export prices compared to 2022 has been promising for the sector. As of January-September 2024, our footwear exports have declined by 12.2%, reaching $898.2 million, while unit export prices have increased by 11% compared to the same period last year.

The leather and leather goods sector is undergoing a significant transformation, driven by mega-trends like sustainability and digitalization. It is crucial for sector players to adapt to these changes and take proactive steps to shape the future of the sector. Sustainability and digitalization will enhance the sector’s competitiveness and ensure its long-term success, and in this process, we, as the Ministry of Trade, will stand by all our manufacturers and exporters.

On this occasion, I would like to extend my greetings to all participants of the MasterShoes Footwear Fashion Fair, which will be held in my hometown Konya, a city that is growing, developing, and gaining worldwide recognition in the footwear and leather sector. I wish each participant success and prosperous business.

Stay healthy!

PROF. DR. ÖMER BOLAT

MINISTER OF CUSTOMS AND TRADE OF THE REPUBLIC OF TÜRKİYE