Turkey's trade balance reports deficit again in May

Turkey’s trade balance reports deficit again in May

According to provisional data released by the State Institute of Statistics (DIE), Turkey's trade balance posted a $3.2 billion deficit in May, up by 91.8% compared to the same period of last year. In the mentioned period, exports were up by 23.4% to $4.76 billion while imports were recorded as $7.97 billion with an increase of 44.1%. In the first five months of the year, total trade deficit reached $13.8 billion, indicating a rise of 91.6% compared to the corresponding period of previous year. The deficit in trade balance is mainly attributed to the rapid growth in domestic demand and private sector investments, driven by automobile and durable consumption goods. In addition, the share of consumer goods imports reached 16.5% in total imports as of May. Furthermore, the ratio of capital goods in total imports surged to 19.7%. There was a slight slowdown in the export performance in May. Exports of automotive and parts rose by 50% y-o-y, iron and steel exports surged by 92% and electrical machinery by 47%. On the other hand, ready-wear exports fell by 4.5% and some agricultural goods exports also dropped by in y-o-y terms.