Payment behaviors between companies continue to deteriorate as a persistent trend. During 2017, companies in Turkey have made their payments 15 days later than the average of 2007 and 16 days later than the global average of 2016 (64 days in 2016). Payments of companies in construction, high technology, paper, pharmaceuticals, and machinery industries need more than three months to be paid. This negative trend is also reflected in corporate insolvencies, which are expected to rise by 4 percent in 2017 with 12.800 cases. A decrease of the insolvencies index is expected in 2018 (-4 percent) but figures are still 30 percent above the levels recorded ten years ago.

Müdürü Özlem Özüner, CEO of Eurler Hermes Turkey, said: “Industrial production continues to surge and supports a robust outlook. Nevertheless, no further acceleration is expected in the near term. Export growth will remain robust; while inflation will stay in double digits until the end of 2017 before easing slightly to an average 9 percent in 2018.”
Exports will continue their recovery, creating additional transactions of 160 billion USD in 2017 and 2018. Textile, Machinery, Chemicals, Automotive and Agrifood are the sectors with the highest potential. They will benefit from recoveries in the Middle East, North Africa and Europe.

Current Deficit continues to be the “Achilles’ heel” for Turkey. High current account deficits largely financed through new short-term external debt has been a looming risk for a long time. Current Deficit equaled to 3.8 percent of GDP during 2016, and expanded to 5 percent in 2017. It is expected to remain higher than 4 percent during 2018.