Turkey’s November foreign trade deficit down 0.6% y/y.

By bne IntelliNews December 31, 2013

Turkey’s foreign trade gap narrowed 0.6% y/y to USD 7.15bn in November.

November deficit came as a surprise as the markets had expected a foreign trade deficit of USD 7.7bn (Reuters poll). Foreign trade deficit rose by 16.8% y/y to USD 89.8bn in January-November, data of the statistics institute (TUIK) also showed.

Exports, which had fallen 8.5% y/y in October, rose 3.6% y/y to USD 14.25bn while the rate of import growth slowed to 2.2% y/y to USD 21.4bn in November from 32.5% y/y in the previous month.

On a seasonally & calendar adjusted basis exports rose by 4% m/m while imports fell 0.9% m/m. The calendar adjusted exports and imports rose 3.4% y/y and 6% y/y, respectively in November.

Consumer goods imports (13% share in total) increased 9.8% y/y and intermediate goods imports (72% share in total imports) registered a 1% y/y increase which suggests a slowdown in economic activity.

Turkey’s exports to the EU rose 8.7% y/y to USD 6.29bn and the Block’s share in Turkey’s exports increased to 44.1% in November from 42% a year ago. Exports to the Middle East (a 22.9% share in total) fell 3.8% y/y in the month while shipments to the Americas (a 5.1% in total) declined 7.5% y/y.

Turkey’s energy imports dropped 10.4% y/y to USD 4.78bn in November and the country’s energy import bill stood at USD 50.7bn in the first eleven months of the year, representing a 7.8% y/y decline. Precious metals imports (gold), which has been one of the main drivers of Turkey’s current account deficit, soared 116.1% y/y to USD 996mn while their exports shrank 61.7% y/y to USD 461mn.

If consumer loan growth remains strong this will lead to wider current account deficit and the weakness in TRY will also be decisive going forward. TUIK data showed that consumer goods imports rose 9.8% y/y in November versus 8.4% y/y increase in October.

Related Articles

Austrian Chancellor: Tell Turkey it's simply not an EU membership candidate

Austrian Chancellor Christian Kern told a German daily on July 27 that when it comes to Turkey’s European Union accession hopes "it has to be legitimate to say: 'You simply are not a ... more

Spooked Turkish textile exporters fear missing target due to Berlin's Turkey travel warnings

Some German buyers have cancelled trips to Turkey after the rise in political tension between Ankara and Berlin, Seref Fayat, head of the Turkish Clothing Manufacturers Association, said on July 25, ... more

Turkey reportedly set to raise debt limit for first time in 8 years as Ankara fuels credit

Turkey is preparing to raise its debt limit for the first time since 2009 after first-half borrowing left the Treasury near its legal ceiling, Bloomberg reported on July 25. Citing a person with ... more

Dismiss