Türkiye’s foreign trade deficit plunges 42 percent in July

Türkiye's foreign trade deficit declined by 41.8 percent year-on-year in July to $7.3 billion as exports rose and imports dwindled, data from the Turkish Statistical Institute (TÜİK) have shown.

Exports amounted to $22.5 billion last month, increasing 13.8 percent from July 2023, but imports plunged 7.8 percent annually to $29.8 billion, TÜİK said on Aug. 28.

"We have made significant progress in reducing the high current account deficit, which is one of the macroeconomic imbalances," Finance Minister Mehmet Şimşek wrote on X, commenting on the latest trade data.

The annual foreign trade deficit in July decreased by $38.7 billion compared to the same period of the previous year, said Şimşek, adding that this indicates an annual current account deficit of less than $20 billion for July.

"The decreasing current account deficit and external financing need to contribute significantly to the disinflation processi," the minister said.

The export/import coverage ratio improved from 61.2 percent in July 2023 to 75.5 percent last month, showed TÜİK data.

Excluding gold and energy imports, the foreign trade deficit was $2.98 billion, and the export/import coverage was 87.3 percent, said TÜİK.

Germany was the largest export market for Türkiye, followed by the United Kingdom and the United States.

Exports to Germany and the United Kingdom amounted to $1.75 billion and $1.6 billion, respectively. Shipments of goods to the United States generated $1.44 billion in export revenues.

Exports to Italy stood at $1 billion. The top five countries' share in Türkiye's total export revenues was 30.6 percent.

Some 40 percent of exports — $9.1 billion — went to the European Union, rising 6.2 percent year-on-year. In the...