Turkey’s foreign trade deficit widens
Turkey's State Institute of Statistics (DIE) disclosed that the country's foreign trade deficit rose 44.3% year on year to $4.1 billion in May 2005.
Consequently,
Turkey posted a total trade deficit of $16.1 billion for the first five months of 2005, up 22.7% year on year.
Exports rose 9.9% year on year to $5.68 billion in May but were unable to keep pace with imports, which surged 22% to $9.76 billion.
Economists indicate that the growth rate of exports began to lose momentum due to rising wages, the appreciation of the Turkish currency and a slowdown in efficiency increases.
On the other hand, imports continued their robust performance thanks to strong economic growth, high oil prices and the appreciation of both the Turkish currency and the US Dollar.
The current trend is expected to continue for the rest of the year. Year-end estimates peg exports at $78 billion and imports at $107 billion, meaning
Turkey could be looking at a $29 billion trade deficit for 2005.