Turkey’s trade deficit grows wider
Turkey's trade deficit rose 38.7% year-on-year to $2.34 billion in January 2005, according to data released by
Turkey's State Institute of Statistics (DIE).
Exports rose only 0.3% year-on-year to $4.62 billion in January; imports on the other hand jumped 10.6% year-on-year to $6.96 billion.
Imports remained strong mostly due to the continuing sharp appreciation of the TRY. The slowdown in export momentum and a relatively strong level of intermediate and capital goods imports contributed to a higher-than-expected foreign trade deficit in January.
Asian competition and the TRY's appreciation seem to be taking their toll on the textile sector. Ready-to-wear exports fell 15% year-on-year, while overall textile exports declined 18%.
The rises of 93% in fuel exports, 23% in iron and steel, 40% in iron products and 10% in motor vehicles affected the slight increase in total exports.
According to January trade deficit, current account balance is expected to post a deficit of $1.35 billion in January, following a deficit of $948 million in December 2004.
Nevertheless, it is too early to say whether this trend will continue for 2005, as the first month figures have historically not been a particularly good indicator of what will happen the rest of the year.