Foreign trade deficit shrinks 44 percent in February

The foreign trade deficit declined by 44.2 percent in February from a year ago, data from the Turkish Statistical Institute (TÜİK) has shown.

The country's exports rose by 13.6 percent year-on-year to $21.08 billion, while imports plunged 9.2 percent to $27.85 billion, leading to a foreign trade deficit of $6.77 billion.

The export/import coverage ratio improved sharply from 60.5 percent in February 2023 to 75.7 percent last month.

On a seasonally and calendar adjusted basis, exports grew 2.1 percent in February from January, while the monthly increase in imports was 4.9 percent.

Energy and non-monetary gold imports excluded, the foreign trade deficit was $1.4 billion last month, said TÜİK.

Germany was once again the largest market for Turkish companies. Shipments to Germany amounted to $1.72 billion. The U.S. ranked second at $1.33 billion, followed by Italy at $1.16 billion.

In terms of imports, Russia topped the list. Türkiye bought $4 billion worth of merchandise from Russia in February.

Imports from China and Germany, on the other hand, stood at $3.43 billion and $2.2 billion, respectively.

In February, consumer goods imports leaped 26 percent year-on-year to $4.3 billion, capital goods imports rose 24 percent to $4.4 billion, but intermediate goods imports fell 19 percent from February last year to $19.2 billion.

In the first two months of 2024, Türkiye's export revenues surpassed $41 billion, rising 8.5 percent compared to the same period of last year.

Imports were down 16 percent annually to $54 billion.

Consequently, Türkiye's foreign trade balance posted a deficit of $12.96 billion in January-February, marking a 51 percent decline from a year ago.