NEWS ECONOMY NEWS        02/09/2020

Turkey’s foreign trade deficit is USD 6.3 billion in August 2020 per preliminary calculations

According to preliminary figures provided by the Trade Ministry based on the General Trade System (GTS), Turkey’s foreign trade deficit for August 2020 was USD 6,312 million, 169.7% higher than the USD 2,341 million deficit figure for the same month of the previous year, and 130% higher than the USD 2,846 million deficit figure for the previous month of July 2020. The high trade deficit in August has been attributed to some USD 4 billion imports of gold this month. However, exports have nevertheless appeared to have weakened this month despite the normalisation of trade since the pandemic shutdown earlier in the year. Lower exports in turn would appear to be due to poorer automotive exports. If the gold imports are a one off event, then the deficit can expect to narrow substantially in September.

 

Exports were USD 12,463 million in August 2020, 5.7% lower than the figure for the same month of the previous year, and 17% lower than the figure for the previous month of July 2020. Imports were USD 18,776 million in August 2020, 20.6% higher than the figure for the same month of the previous year, and 5.7% higher than the figure for the previous month of July 2020.

 

The percentage of imports met by exports was 66.4% in August 2020 compared with 85% in the same month of the previous year.

 

With regards the first eight months of 2020, Turkey’s foreign trade deficit was USD 32,902 million, 69.4% higher than the figure for the same period of the previous year. Exports were USD 102,478 million, 12.8% lower, and imports were USD 135,380 million, 1.1% lower than the figures for the same period of the previous year.

 

The machinery and equipment sector moved into the leading position in the export table in August 2020 with USD 1,258 million (10.1% of total exports), followed by the automotive sector with USD 1,246 million (10% of total exports). It would appear that the automotive sector, until now for many years the locomotive sector behind Turkey’s drive to open up global export markets to Turkish products, has not as yet fully recovered from the shutdown of its automotive plants in March, April and May as a result of the coronavirus pandemic. Pre-pandemic export levels for the automotive sector were over USD 2 billion and around 14-15% of total exports.

 

The precious stones and metals sector moved into the leading position in the import table in August 2020 with USD 4,239 million (22.6% of total imports), followed by the energy sector with USD 2,172 million (11.6% of total imports), and the machinery and mechanical equipment sector with USD 1,957 million (10.4% of total imports). It has been led to believe that the high precious stones and metals sector figure, 338.4% higher than the figure for the same month of the previous year, was due to large import shipments of gold in August.

 

The top five countries to which Turkey exported in August 2020 are Germany (USD 1,210 million), UK (USD 989 million), USA (USD 740 million), Iraq (USD 640 million), and Spain (USD 582 million).

 

The top five countries from which Turkey imported in August 2020 are China (USD 1,930 million), Germany (USD 1,696 million), Iraq (USD 1,674 million), Russia (USD 1,356 million), and Switzerland (USD 1,165 million).

 

For the year 2019, the trade deficit was USD 29,512 million, a 45.3% decrease on the previous year. Exports in the year 2019 were USD 180,833 million (a 2.1% increase) and imports were USD 210,345 million (a 9% decrease).

 

 



Turkey’s net minimum wage has been raised 15.04% to TL 2,324.70 (USD 391) as of 01.01.2020       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s annual inflation rate remains stable at 11.77% in August 2020       Turkey’s official unemployment rate increases to 13.4% in June 2020       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 83,154,997 as of 2019 yearend       Foreigners visiting Turkey in 2019 increase by 14.1% to a record 45.1 million       Turkey’s private sector foreign debt is USD 189.8 billion as of 2019 yearend       Turkey’s economy grew by 0.9% in 2019