The statistics institute (TUIK) will announce foreign trade data for November today (Dec 31).
The markets are looking for a foreign trade deficit of USD 7.7bn.
Turkey’s foreign trade deficit widened 31.8% y/y to USD 7.38bn in October versus market consensus forecast of USD 7.35bn. Exports were down 8.2% y/y to USD 12.1bn (market estimate: USD 12.38bn) but imports rose 3.7% y/y to USD 19.48bn (market estimate: USD 19.52bn). Foreign trade deficit rose by 18.5% y/y to USD 82.6bn in January-October. Ten-month exports fell 1.2% y/y to USD 124.5bn and imports recorded a 5.8% y/y rise, amounting to USD 207.1bn.
Foreign trade gap is the one of the primary components of Turkey’s current account deficit. Turkey’s current account deficit was USD 2.89bn in October in line with the market consensus forecast of USD 2.9bn. In January-October, the country’s CA deficit rose to USD 51.9bn from USD 39.6bn in the same period of 2012.
Earlier this week, finance minister Mehmet Simsek argued that the pass-through from currency weakness to inflation will be limited but the weakness in TRY is likely to lead to a significant adjustment in the current account deficit.
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