NEWS ECONOMY NEWS        31/08/2020

Turkey’s trade deficit is USD 2.7 billion in July 2020

According to figures prepared by the Turkish Statistical Institute (TÜİK- TurkStat) in cooperation with Turkey’s Ministry of Trade, and using the General Trade System (GTS) calculation method, Turkey’s foreign trade deficit was USD 2,697 million in July 2020, 18.2% lower than the figure for the same month of the previous year, and also 5.4% lower than the deficit for the previous month of June 2020.

 

Exports totalled USD 15,012 million and imports totalled USD 17,709 million in July 2020. The export figure was a 5.8% decrease and the import figure a 7.9% decrease on the figures for the same month of the previous year. The export figure was 11.6% higher and the import figure 8.6% higher than the respective figures for the previous month of June 2020. Exports and import figureshad collapsed in April and May was due to the coronavirus pandemic.

With the lockdown gradually relaxed in June, Turkey’s foreign trade activity largely recovered that month. The improvement in July reflects a continuation of that recovery.

 

For the first seven months of 2020, the trade deficit was USD 26,590 million, 55.6% higher than the figure for the same period of the previous year. Exports totalled USD 90,015 million and imports totalled USD 116,605 million in the first seven months of 2020. The export figure was a 13.7% decrease and the import figure a 3.9% decrease on the figures for the same period of the previous year.

 

The trade deficit for the year of 2019 was USD 29,512 million, a fall of 45.3% on the previous year. Total exports were USD 180,833 million, a 2.1% increase, and total imports were USD 210,345 million, a 9% fall on the figures for the previous year.

 

The automotive sector was again the leader in the export table in July 2020 with USD 1,910 million (12.7% of total exports), followed by machinery and equipment exports with USD 1,521 million (10.1% of total exports). Normal monthly automotive exports prior to the coronavirus pandemic were over USD 2 billion and around 14-15% of total exports, and it is hoped that automotive exports will return to this level in the coming months assuming that there will not be a second surge in the pandemic.

 

The energy sector is back into first place in the imports table in July 2020 with USD 2,413 (13.6% of total imports), followed by machinery and mechanical equipment with USD 2,143 million (12.1% of total imports)

 

Turkey’s exports to the EU, Turkey’s main trading partner, were USD 6,283 million in July 2020, 6.1% lower than the figure for the same month of the previous year. but 13.8% higher than the previous month of June. The share of total Turkish exports to the EU was 41.9% in July 2020 compared with 42% in the same month of the previous year. With regards the full year of 2019, Turkey’s exports to the EU were 42.4% of its total exports.

 

Germany, the EU’s largest economy, was the leading recipient of Turkish goods in July 2020, with USD 1,468 million. UK followed with USD 973 million, USA with USD 952 million, Iraq with USD 743 million, France with USD 704 million, Spain with USD 639 million, and Italy with USD 632 million. With regards the full year of 2019, rankings were as follows: Germany (USD 16,624 million), UK (USD 11,281 million), Iraq (USD 10,224 million), Italy (USD 9,754 million), USA (USD 8,972 million), Spain (USD 8,141 million), and France (USD 7,946 million).

 

China was the leading exporter to Turkey in July 2020 with USD 1,912 million, followed by Germany with USD 1,835 million, Russia with USD 1,233 million, USA with USD 970 million, Iraq with USD 962 million, Italy with USD 797 million, and France with USD 559 million. With regards the full year of 2019, rankings were as follows: Russia (USD 23,117 million), Germany (USD 19,279 million), China (USD 19,128 million), USA (USD 11,847 million), USA (USD 9,349 million), France (USD 6,760 million), India (USD 6,635 million), South Korea (USD 5,777 million) and UK (USD 5,638 million).

 

The percentage of imports covered by exports was 84.8% in July 2020, compared with 82.9% in the same month of the previous year. With regards the full year of 2019, the percentage of imports covered by exports was 86%  compared with 76.6% in the previous year.

 

Using the Special Trade System (STS) calculation method of foreign trade, Turkey’s foreign trade deficit in July 2020 was USD 2,876 million, a decrease of 10.7% on the same month of the previous year. Exports were USD 14,264 million, a decrease of 5.7% on the same month of the previous year, and imports were USD 17,140 million, a decrease of 6.6% on the same month of the previous year. The deficit for the full year of 2019 was USD 31,239 million, with exports of USD 171,465 million and imports of USD 202,704 million.



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