Turkey: Trade deficit continues to widen
December 30, 2010
Exports increased 6.0% in November over the same month last year to reach USD 9.4 billion, which was down from the 8.8% expansion registered in October. Exports had been expanding at a double-digit pace since the start of the year, primarily owing to stronger demand from Western Europe. However, in recent months, exports appeared to lose steam amid ongoing uncertainty regarding the economic recovery in the Eurozone. The November increase in exports was driven by strong shipments to Germany, which added 13.3% over the same month last year. Nevertheless, exports still remain below pre-crisis levels, with the 3-month sum in exports standing at USD 29.4 billion, well below the July 2008 peak of USD 36.8 billion (trough in May 2009 with USD 23.1 billion). Imports continue to expand, buttressed by resilient domestic demand. In November, imports rose 35.7% year-on-year, virtually unchanged compared to the 35.5% increase recorded in October. As a result, the moving 12-month trade deficit is widening rapidly, reaching USD 67.6 billion in November.