Turkey's trade deficit surges 160% in August

Turkey's trade deficit surges 160% in August
Update: 30 September 2022 15:01
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Turkey’s trade deficit continues to rise despite the government’s economic policy to boost production with low interest rates to attain current account surplus

Turkey's foreign trade deficit jumped in August at a record pace of 159.9% year-on-year to $11.19 billion, with imports soaring 40.4%, Turkish Statistical Institute (TUIK) said on Friday.

Imports stood at $32.53 billion, while exports rose 13.1% to $21.34 billion, the data from TUIK showed.

Turkey unveiled an economic programme last year, to shift to a current account surplus through low interest rates that was supposed to boost production and stronger exports.

But soaring inflation and a tumbling currency due to global energy and commodity prices have made that target unattainable.

But President Erdogan insists his economic policy will keep Turkey on the right track. 

During a meeting with prominent U.S. business people in New York last week, Erdogan said he made a deliberate choice “by building our economic programme on our country’s growth through investment, employment, production, exports and current account surplus.”  

“We continue to determinedly implement our economic programme.” he said.

Turkey is almost completely reliant on energy imports from Russia, Azerbaijan and Iran to meet its needs. The global energy  prices nearly quadrupled during past year.