Last Minute: Record in foreign trade deficit!

Turkish Statistical Institute (TUIK) shared the foreign trade data with the public. Accordingly, the foreign trade deficit continued to increase in August as well. According to the data, exports increased by 13.1 percent and imports by 40.4 percent in August. In the January-August period, exports increased by 18.2 percent and imports by 40.7 percent.


According to TurkStat and Ministry of Commerce data; In August 2022, exports were 21 billion 337 million dollars and imports were 32 billion 531 million dollars compared to the same month of the previous year. Thus, the current account deficit increased by 11 billion 194 million dollars in August. Foreign trade deficit increased by 159% compared to the same month of the previous year.

While the ratio of exports to imports was 81.4 percent in August 2021, it decreased to 65.6 percent in August 2022.


In the January-August period, exports amounted to 165 billion 608 million dollars, while imports amounted to 239 billion 43 million dollars. Thus, the 8-month deficit amounted to 73 billion 435 million dollars.

In the January-August period, the foreign trade deficit increased by 146.3 percent. While the ratio of exports to imports was 82.5 percent in the January-August period of 2021, it decreased to 69.3 percent in the same period of 2022.


In August, the most imports were from the Russian Federation with 6 billion 297 million dollars. In the second place, China with 4 billion 147 million dollars, Germany with 2 billion 49 million dollars, Switzerland with 1 billion 750 million dollars and the USA with 1 billion 324 million dollars followed. Imports from the first 5 countries accounted for 47.9 percent of total imports.

In the January-August period, the Russian Federation took the first place in imports. While the imports from the Russian Federation amounted to 38 billion 413 million dollars, respectively; China with 28 billion 34 million dollars, Germany with 15 billion 328 million dollars, the USA with 10 billion 295 million dollars, and Italy with 9 billion 132 million dollars. Imports from the first 5 countries constituted 42.3 percent of total imports.


While the economic policies of the government are at the center of harsh criticism, all the promises of President of AKP, Recep Tayyip Erdogan, turn out to be empty. Erdogan was wrong in all his ideas about inflation, foreign trade and the current account deficit. With the increase in the exchange rate, Turkey would become attractive for foreign countries. Exports increased as Turkish goods became cheaper. However, there was also a significant increase in imports.

In a speech he made last December, Erdogan said, “I hope the days when we will start to have a current account surplus are soon.” On the other hand, Treasury and Finance Minister Nureddin Nebati was wrong in his claims that inflation would decrease by the middle of the year.


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