Turkey’s foreign trade deficit increased by 6.5% y/y to $7.03bn in July (market consensus forecast: $7.08bn), the second y/y increase recorded this year after March’s 18.1%.

Data from the statistics office TUIK showed on August 31 that exports fell by 16.2% y/y to $11.18bn, while imports declined by 8.7% y/y to $18.2bn.

On a seasonally and calendar adjusted basis exports increased only 0.1% m/m and imports increased by 3.9% m/m, while on a calendar adjusted basis exports declined by 17.2% y/y and imports were down 12.5% y/y.

Turkey’s exports to the EU fell by 13.8% y/y to $5.2bn and the EU’s share in the country’s overall exports, however, rose to 46.3% in July from 45% a year ago.

Exports to the Middle East (some 21% share in total exports) dropped by 12% y/y in July, while shipments of merchandise goods to Africa (8.9% share in total) declined by 4.5% y/y. Exports to the Americas (7.5% in total) fell by 7.7% y/y in the month.

Reflecting the favourable effects of the decline in oil prices, Turkey’s energy import costs fell by 38.3% y/y to $3.05bn in July and declined by 27% y/y to $23.7bn in January-July.

Exports of precious metals (mostly gold) were down by 45.1% y/y to $291mn, but their imports soared 180y/y to $725mn in July.

The government expects a foreign trade deficit of $85bn at the end of this year. Turkey’s foreign trade deficit declined by 15.3% y/y to $84.6bn last year as exports increased by 3.8% to $158bn and imports fell by 3.8% to  $242bn.