Turkey's trade deficit rises in June

Turkey’s trade deficit rises in June

Turkey's State Institute of Statistics (DIE) disclosed that the country's foreign trade deficit rose 27.3 percent year on year to $4.055 billion in June. Consequently, Turkey posted a total trade deficit of $20 billion for the first six months of the year, up 22.8 percent year on year. Exports rose 9.7 percent year on year to $5.79 billion in June but were unable to keep pace with imports, which surged 16.3 percent to $9.85 billion. Economists indicate that the growth rate of exports began to lose momentum due to the slowdown in productivity increases and the appreciation of the Turkish currency. Manufacturers, who were trying to deal with rising unit costs, were unable to cope with the increasing competitive pressures in the international markets. The current trend is expected to continue for the rest of the year. Year-end estimates show that the foreign trade deficit could reach $40 billion and that the current account deficit could rise to $18.3 billion.