Turkey’s exports increased by 8.6% y/y, the highest figure recorded this year, to USD 12.7bn in May, the Turkish Exporters’ Assembly (TIM) said on Friday (May 31). Exports rose only 0.3% y/y in March and 4.9% y/y in April after they increased 5.6% y/y both in January and February. In the first five months of the year Turkey’s exports registered a 4.4% y/y increase to USD 62.27bn while 12-month exports (May 2012-May 2103) amounted to USD 153.7bn, slightly up from 153.5bn in April 2012-April 2013.

Exports destined for Europe rose 8% y/y in the month with Germany maintaining its top export market status with a 8.5% share (or USD 1.1bn) in total exports, followed by Iraq with a 7.8% (or USD 1bn).

Data of the TIM also showed that automotive industry was one of the top gainers as the sector’s exports rose 11.6% y/y to USD 1.85bn in May. The textile & confection industry managed to increase its exports by 6.8% y/y to USD 1.4bn and textile exports rose by 10.1% y/y to USD 750mn in the month. Steel exports were down 5.1% y/y to USD 1.3bn.

TIM reported a 5% y/y increase in exports for the month of April however the Statistics Institute, which announces official data, said last week that Turkey’s exports actually declined by 0.9% y/y to USD 12.5bn for a second consecutive month in April.

Turkey’s foreign trade deficit soared 55% y/y to USD 10.3bn in April which was well above the market consensus forecast of USD 8bn.

Lower exports suggest that Turkey’s chronic current account deficit problem will gain momentum in May.  In Q1, CA deficit decreased by 2% y/y to USD 15.9bn from USD 16.3bn a year ago.