Turkey’s widening trade deficit slowed down significantly
According to the data released by the State Institute of Statistics (DIE), the widening in
Turkey's trade deficit slowed down remarkably in October 2004, as the deficit rose by just 29% year-on-year to $2.3 billion. In the mentioned period, exports rose by 18.2% to $5.7 billion while imports reached $8 billion with a rise of 21%.
The share of
consumption goods imports in total imports surged to 15% in October compared to 14.4% in the first nine months of the year. On the other hand, imports of intermediate goods rose by just 16.5% year-on-year. Capital goods imports also showed a modest increase of 13.5% year-on-year. Accordingly, the decline in imports is mainly attributed to the slowdown in domestic
production.
The breakdown in imports indicates a slowdown in economic activity in October 2004. Vehicle and parts imports rose by just 14.1% year-on-year, posting the lowest year-on-year increase. Machinery, boilers and mechanical equipment imports soared by 7.9% from a year earlier. The highest increases in imports were recorded in iron and steel with 62% and electrical machinery and equipment with 28% year-on-year. On the export side, vehicle and parts exports continue to fuel exports by rising 46% year-on-year. Iron and steel exports increased by 46% from a year earlier.
In the first ten months of the year, the export share of 25 member states of European Union (EU) has remained unchanged at 55% while EU has lost market share in total imports falling to 46.6% from 50%. This situation is attributed to two factors. Firstly, the increase in crude oil prices has increased
Turkey's energy bill and related imports. Thus,
Turkey's imports from
Russia rose by 64% from a year earlier. Secondly,
China's exports to
Turkey rose by 74% year-on-year, indicating the highest increase above all countries.