Energy prices fell, imports decreased
While import appetite continued to increase in 2023 except for June, the import bill decreased with the decline in global energy prices.
Tolga Ugur
While Turkey’s foreign trade deficit started to decline from record levels, the decline was achieved by the decline in the import bill. According to Turkish Statistical Institute (TUIK) data, the foreign trade deficit decreased by 47 percent on an annual basis in September, falling to 9.6 billion dollars. It broke a record by exceeding 14 billion dollars in January, and 12.4 billion dollars in May, when the elections were held. dollar The foreign trade balance, which had a deficit, recovered after the election with the influence of the summer months. The partial improvement in the foreign trade balance, which had a single-digit deficit except for July, was due to the global decline in the prices of imported products rather than the decline in the amount of imports. According to foreign trade indices, the import quantity index increased by 3.1 percent on an annual basis in September, while the import unit value index decreased by 17.1 percent in the same period.
87 BILLION DOLLAR DEFICIT
In the January-September period, the import quantity index decreased only in June compared to the same period in 2022. In the other 8 months of 2023, there was an increase in import demand, not a decrease, compared to 2022. The unit value index, which measures the invoice of imports made in the same period, has been declining on an annual basis since February.
In the January-September period, the foreign trade deficit increased by 4.9 percent on an annual basis, reaching 87 billion 228 million dollars. According to the data, the decrease in imports was largely due to the decline in raw material and fuel prices. Although Turkey’s fuel imports increased by 12.3 percent in September compared to September 2022, the fuel import bill decreased by 43.4 percent in the same period. While the manufacturing quantity index, excluding food, beverages and tobacco, increased by 7.7 percent on an annual basis in September, the unit value decreased by 5.6 percent.
