Turkey's trade deficit widens by 18.7% in the first half of 2023

Turkey's trade deficit widens by 18.7% in the first half of 2023
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Exports down 10.5 percent, imports down 17.5 percent in June

According to data released by the Turkish Statistical Institute (TurkStat), Turkey's foreign trade deficit increased significantly by 18.7% in the first six months of 2023, reaching a total of $61.2 billion.

Exports fall in June 2023

Exports experienced a notable decline in June 2023, falling by 10.5% year-on-year to a total of $20.9 billion. The main contributors to this decline were Germany, the U.S., the U.K., Italy, and Iraq, which accounted for 29.6% of total exports.

Imports also fell sharply in June

At the same time, imports experienced a significant decline of 17.5%, amounting to $26.1 billion in June 2023. The top import partners during this period were China, the Russian Federation, Germany, Switzerland, and Italy, accounting for 42.6% of total imports.

Monthly Performance

In June 2023, exports showed a positive month-over-month trend, increasing 3.8% on a seasonally and calendar-adjusted basis. In contrast, imports decreased by 11.9% in the same period.

Compared to the same month of the previous year, June 2023 recorded a marginal decrease of 0.3% in exports and a more substantial decrease of 9.7% in imports, according to the calendar-adjusted series.

Manufacturing dominates exports

The manufacturing industry dominated Turkey's exports, accounting for 95.2 percent in June 2023 and 94.7 percent in the first six months of the year.

Intermediate goods account for the largest share of imports

Intermediate goods formed the largest share of imports, accounting for 71.2% in June 2023 and 74.9% in January-June.

The shift in the ratio of exports and imports

The ratio of exports to imports experienced a shift, decreasing from 73.9% in June 2022 to 80.2% in June 2023, while it decreased from 70.9% in January-June 2022 to 66.8% in the same period of 2023.

Foreign trade deficit declines year-on-year

Although the trade deficit increased by 18.7% in January-June 2023 compared to the same period last year, it decreased significantly by 37.3% in June 2023 compared to June 2022, reaching $5.2 billion.

Germany continued to lead the list of Turkey's export partners in June 2023 and January-June. China was the top trading partner for imports in June 2023, while the Russian Federation was the top trading partner in January-June.

Turkey's foreign trade landscape remains dynamic, influenced by various global and domestic factors, and shows fluctuations in exports and imports.