THE RISE OF TURKEY TRADE DEFICIT AND ITS IMPACT ON TURKEY’S ECONOMY


 


PRE-EARTHQUAKE ECONOMIC SCENARIO OF TURKEY

 

Turkey is an active and founding member of the OECD and G20 in the years 1961 and 1999 respectively. As the economy of the nation was growing rapidly before the earthquake, Turkey got listed in the list of those seven countries that are expanding at a very rapid pace. Just before the earthquake hit the country, Turkey’s economy was one of the largest economies in the world and was ranked in the top 20 countries as per nominal GDP. IMF also claimed that Turkey comes with an upper-middle income type of economy.

 

Turkey was rich in producing farming products, textiles, garments, automobiles, and electronics. In the year 2023 only, the nominal GDP of Turkey touched USD 1.02 trillion, and it's per capita GDP crossed a benchmark of USD 41,412.

 

Not only this but Turkey Trade Data was also growing every year due to the setting up of cordial and meaningful trade relationships between Turkey and other nations of the globe.

 

TURKEY TRADE DATA TRENDS (2018-2022) PRE- EARTHQUAKE

YEAR

IMPORTS

EXPORTS

REMARKS

2018

USD 223.04 billion

USD 167.92 billion

Trade Deficit (USD 55.12 billion)

2019

USD 210.34 billion

USD 180.87 billion

Trade Deficit (USD 29.47 billion)

2020

USD 219.51 billion

USD 169.65 billion

Trade Deficit (USD 49.86 billion)

2021

USD 271.42 billion

USD 225.26 billion

Trade Deficit (USD 46.16 billion)

2022

USD 363.71 billion

USD 254.17 billion

Trade Deficit (USD 109.5 billion)

 

In the Span of five years, it is clearly seen that Turkey Import Data went up by almost 63%, whereas Turkey Export Data went up by 51.36%.

 

TURKEY TRADE DEFICIT RISES IN THE MONTH OF MARCH 2023

 

As we are aware that a very strong earthquake shook Turkey in the month of February 2023, almost every industry in the country got affected due to this as the earthquake damaged numerous machines, factories, labs, and warehouses. Because of this event, the international trade of Turkey is at its all-time low. To fulfill the demands of its citizens only international aid is operational as imports to the nation. Due to this the trade deficit of Turkey is inching up every month which is also causing pressure on other regulatory bodies of the country.

 

As per the latest reports released in the form of Turkey Trade Data for the month of March 2023, the total foreign deficit went up by 0.9% and touched USD 8.40 billion only in one month. Talking about exports, a growth of only 4.4% was observed in Turkey Export data that reached up to USD 23.62 billion. On the other hand, the imports of the nation also went up to USD 31.9 billion which gave Turkey Import Data a growth potential of 3.4%.

 

On removing the share of some major products such as mineral oils and fuels, and gold, the total trade deficit experienced by Turkey in the month of March was USD 21.2 billion.

 

After Earthquake, exports from Turkey declined by 6.4% and reached USD 18.5 billion, on the other hand, the imports to Turkey rose by 10.6% and reached USD 30.83 billion. As mentioned earlier, this happened because of Turkey’s massive imports of unprocessed gold.

On comparing the statistics and Turkey Import Data for March 2023 with last year, crude oil imports showed a major decline of 5.2% or USD 2.5 million tons of oil. Last year the imports of crude oil were worth USD 2.66 million tons.

 

It has also been calculated that in the first quarter of 2023, the trade gap has increased by 30.69% or USD 35 billion as compared to the previous year’s statistics. 

 

CONCLUSION

 

The harsh reality is that as per the current scenario, it is expected that the trade deficit of Turkey would widen a bit more in the coming days or months as the nation needs some time to get over the damages and losses that are caused due to the natural calamity. Being an emerging country in the world, Turkey would be back in action like it was before and then the trade deficit would start getting to narrow up.

 

We recommend that if you are looking for a more detailed analysis and Import Export Data report for Turkey, then get in touch with us and get all your questions answered. Tradeimex is known for providing the best and most detailed version of trade reports to its customers with the help of which businesses create their strategies and generate profits. Join our family of 5000+ happy customers today. 

Location: Pitam Pura, New Delhi, Delhi, India

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