Turkey’s trade deficit soars an annual 147 percent in July

Turkey’s trade deficit soars an annual 147 percent in July
Update: 29 August 2022 17:04
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The trade deficit in Turkey reached a record level of $10.69 billion in July

Turkey's foreign trade deficit increased $10.69 billion in July, a 147 percent surge year-on-year, with imports mounting to 41,4%, Turkish Statistical Institute (TUIK) said on Monday, Cumhuriyet newspaper reported

Exports also rose 13.4 percent to $18.55 billion in July, but still failed to meet the imports  of $29.24, data from TUIK showed.

While the import coverage ratio of exports was 79.1% in July 2021, it decreased to 63.4% in July 2022.

In the first seven months of the year, the deficit rose by 143.7% from $25 billion to $62 billion and the export-import coverage for the period decreased to 69.9%.

Turkish government aims to stimulate a current account surplus through stronger exports and low interest rates under a controversial “new economic programme” but soaring inflation and a tumbling currency as well as soaring global energy and commodity prices have made that target difficult to attain.

Opposition figures slammed the economic policy of the government saying Turkey is experiencing the exact opposite of what the government is saying.

“What was the AKP government saying? When lira’s value was down, exports would increase and an abundance of dollars would follow. Where is it then? It's just the opposite,” said Fikri Saglar, a former minister and deputy from the main opposition CHP (Republican People’s Party)