Turkey's Foreign Trade Deficit Shrinks 41.8% in July Amid Rising Exports and Falling Imports

Turkey's foreign trade deficit narrowed by 41.8% in July, falling to $7.295 billion as exports surged by 13.8% to $22.5 billion and imports decreased by 7.8% to $29.8 billion, according to recent data from the Turkish Statistical Institute (TÜİK).

Turkey’s Trade Deficit Shrinks as Export Boom and Lower Imports Drive Economic Turnaround

According to recent data from the Turkish Statistical Institute (TÜİK), Turkey has experienced a substantial improvement in trade conditions this year, with its foreign trade deficit decreasing by 41.8% year-over-year to $7.295 billion. Last month, exports increased by 13.8 percent annually to $22.5 billion, while imports declined by 7.8 percent annually to $29.8 billion.

Türkiye's foreign trade deficit decreased by 32.4 percent from the same period in the previous year, totaling $49.938 billion from January to July 2024.

“We have made significant progress in reducing the high current account deficit, which is one of the macroeconomic imbalances. The decreasing current account deficit and external financing needs contribute significantly to the disinflation process,” Finance Minister Mehmet Şimşek commented on social media platform X.

Turkey's Annual Trade Deficit Drops by $38.7 Billion as Export/Import Coverage Ratio Climbs to 75.5%

The annual foreign trade deficit decreased by $38.7 billion in July compared to last year's period. This suggests that the annual current account deficit for July will be less than $20 billion, according to Şimşek.

The data also indicated that the export/import coverage ratio increased from 61.2 percent in July 2023 to 75.5 percent last month.

According to Economy Middle East News, in July 2024, Turkey's exports, which exclude energy products and non-monetary metals, increased by 13% to $20.524 billion. In the interim, imports, which exclude energy products and non-monetary gold, experienced a 4.2 percent decline to $23.506 billion. Consequently, in July 2024, Turkey's foreign trade deficit, which excludes energy products and non-monetary gold, amounted to $2.982 billion.

Germany Leads as Türkiye's Top Export Partner in July 2024, While China Dominates Imports

In July 2024, Germany was Türkiye's top export partner, with an export value of $1.752 billion. Following closely behind were the United Kingdom ($1.604 billion), the United States ($1.441 billion), Iraq ($1.59 billion), and Italy ($1.29 billion). The first five countries' total export ratio attained 30.6 percent in July 2024.

China was the primary source of imports for Türkiye last month, with a value of $4.155 billion. Germany ranked third at $2.535 billion, while Russia ranked second at $3.773 billion. Italy ranked fourth with $1.407 billion, while the United States recorded $1.4 billion. The first five countries' total import ratio attained 44.5 percent in July 2024.