World Economy

Turkey Trade Deficit Drops 42%

Turkey Trade Deficit Drops 42%Turkey Trade Deficit Drops 42%

Turkey’s foreign trade deficit decreased by 42.5% from $6.29 billion to $3.62 billion in October compared to same month last year, according to data released by Turkish Statistical Institute on Monday.

Exports increased by 3.1% and reached $13.29 billion while imports decreased by 11.9% to $16.91 billion, Anadolu Agency reported.

In October 2015, export-import coverage ratio was 78.6%, increasing from 67.2% in October 2014.

Seasonally and calendar adjusted exports and imports decreased by 2.1% and 1.2% respectively. Calendar adjusted exports decreased by 6.5% and imports decreased by 17.7% compared with October 2014.

Exports to the EU-28 countries increased by 10.7% from $5.68 billion $6.28 billion. The share of the EU countries in total exports was 47.3% in October 2015, while it was 44.1% in October 2014.

In October 2015, Germany was the main destination for Turkish exports with $1.32 billion, followed by the UK with $986 million, Iraq with $870 million and Italy with $707 million.

China led the imports with $2.27 billion followed by Germany with $1.82 billion, Russia with $1.51 billion and Italy with $925 million.

Ratio of exports of high-tech products in manufacturing industries was 4.1%. The share of high-technology products in manufacturing industries exports was 4.1% and medium-high-technology products was 31.9%. High-technology products constituted 16.2% of manufacturing industries’ imports in October 2015.

Meanwhile, agricultural dealers said shipments of wheat to Turkey from key Russian ports were put on hold amid continued tensions between the two countries.

Russia on Thursday announced plans to impose sanctions on Turkish economic interests, including trade. A Turkish jet fighter on Tuesday shot down a Russian bomber along the Syrian border, marking the first time a North Atlantic Treaty Organization member downed a Russian warplane since 1952.

Any impact on wheat prices globally is expected to be short-term. But the disruption is high stakes for both countries. Russian wheat sold to Turkey is one of the biggest trades between the two nations.