Turkish defence and aviation sector’s imports increase by 20 percent
Turkish defence and aviation industry exports fell by 6.6 percent in 2017 compared to 2016, while imports increased by 20 percent and total orders received fell by 32, according to a 2017 industry performance report of the Defence and Aerospace Industry Manufactures Association, quoted by the Dünya newspaper.
The total turnover of the industry increased by 12 percent, reaching $6.7 billion, while the industry’s total net sales was $5.2 billion. Some 82 percent of domestic sales were made to end users, while the share of end users in export sales remained at 38 percent.
The industry’s 2017 exports stood at $1.8 billion, fall of 6.6 percent due to the depreciation of Turkish lira and the decrease in the demand.
The industry’s imports reached $1.5 billion, a 20 percent increase compared to 2016, following a 21 percent fall in 2016, compared to 2015. According to the report, the rise in imports was related to the share of foreign inputs in the total sales volume, as well as the need for companies to stock some goods.
According to the sales breakdown based on the industry's technology segments, land platforms/systems had the highest sales volume, while aviation was in second place.
“By 2016, overseas sales revenues decreased by 6.6 percent in 2017. Exports have remained well below expectations from 2014 and the serious decline in foreign exchange earning service costs in 2017 has adversely affected the 2012-2017 compound annual growth rate, revealing that reaching 2023 targets will be difficult,” the report said.
Strengthening the domestic defence industry and decreasing Turkey’s dependence on foreign goods and services were set as one of the priorities of Turkish President Recep Tayyip Erdoğan in his manifesto for the upcoming presidential and parliamentary elections on June 24.