Turkey's foreign trade deficit widens

By Muhammed Ali Gurtas

ANKARA

Turkey's foreign trade deficit in the first seven months of the year increased by 20.7 percent year-on-year, the Turkish Statistical Institute (TurkStat) announced on Tuesday.

Foreign trade statistics revealed that Turkey's exports between January and July 2017 reached about $90 billion with a 10.6 percent yearly increase.

In the same period, the country's imports rose 13.5 percent to $129.8 billion, marking a seven-month foreign trade deficit of $39.7 billion, a 20.7 percent hike.

The proportion of imports covered by exports was 69.4 percent in the period of January-July this year, while it was 71.2 percent during the same period of 2016.

Germany was Turkey's largest export market at $8.44 billion, followed by the United Arab Emirates st $6.66 billion and Iraq at $5.39 billion.

The U.K. ($5.38 billion) and the U.S. ($5.06 billion) were other major recipients of Turkish exports over the same period.

Imports mostly came from China ($12.9 billion), followed by Germany ($11.32 billion) and Russia ($10.52 billion).

Exports rose 28.3 percent in July

Turkey's imports from the U.S. amounted to nearly $7 billion, from Italy $6.25 billion during the same period.

In the seven-month period, manufacturing made up the most of exports, with a 94.2 percent share and a value worth $84.8 billion.

Agriculture and forestry exports ($2.7 billion) amounted to a 3 percent share and mining and quarrying exports, 2 percent share, i.e. 1.9 billion.

The ratio of medium-high technology products in manufacturing industries exports was 34.1 percent, followed by low tech industries (32.8 percent) and medium-low technologies (29.2 percent).

Intermediate goods constituted the majority of imports, constituting a 74.1 percent share worth $96.2 billion.

Capital goods with a value of $17.7 billion -- 13.6 percent -- and consumption goods ($15.5 billion), at 12 percent, followed.

Official figures showed that the ratio of manufacturing industries’ products in total imports was 81.3 percent and worth $105.5 billion, of which $43.3 billion were medium-high tech imports.

Medium-low tech imports ($34.7 billion), high tech products ($15.3 billion) and low tech imports ($12.1 billion) followed.

Last month, Turkey's exports rose 28.3 percent to $12.6 billion and imports climbed to $21.4 billion, up 46.2 percent, compared to same month in 2016.

"In July 2017 foreign trade deficit was $8.8 billion with percent increase compared with July 2016," TurkStat said.

The institute noted that exports coverage imports 58.8 percent last month while it was 67 percent in July 2016.

TurkStat also highlighted that exports to the EU-28 increased by 18.2 percent year-on-year from $5.06 billion to $5.98 billion.

The country's exports proportion of the EU countries was 47.4 percent last month while it was 51.4 percent in July 2016, it added.