Record decline in foreign trade deficit

Turkey’s exports decreased by 4.1 percent annually in March to 22 billion 578 million dollars. Imports also decreased by 5.7 percent to 30 billion 95 million dollars. Thus, the foreign trade deficit in March decreased by 10.3% compared to the same month of the previous year and reached 7 billion 517 million dollars. The export-import coverage ratio, which was 73.8 percent in March 2023, increased to 75 percent in March 2024.

CALENDAR EFFECT ON ANNUAL DECLINE

Explaining that the most important reason for the annual decline in exports is the calendar effect, the Ministry of Commerce said, “There were 5 Saturday and Sunday holidays in March 2024. In March 2023, there were 4 Saturday and Sunday holidays. Export and import are carried out intensively on weekdays, from Monday to Friday. On Saturday and Sunday, the amount is very low. “The weak course of global economic activities in the Western world, which is our main market, especially in the European Union, which accounts for 40 percent of our exports, and the continuing decline in global trade and imports in the European Union are also very effective in March 2024 exports.” Evaluating the data on his social media account, Minister of Trade Ömer Bolat pointed out that exports in March were above the figures of 20 billion dollars in January and 21.1 billion dollars in February. Bolat said, “The figures in March, which are higher than those in January and February, show that the export increase continues.”

THE MOST FOREIGN SALES ARE TO GERMANY

The top 3 countries with the most exports last month were Germany with 1.6 billion dollars, Italy with 1.1 billion dollars and the USA with 1 billion 59 million dollars. The top 3 cities with the most exports during this period were Istanbul with 8.1 billion dollars, Kocaeli with 2.1 billion dollars, and Bursa with 1.5 billion dollars. It was observed that the exports of 43 provinces increased. 1,421 companies exported for the first time last month. The positive effect of euro/dollar parity on exports continued in March. Last month, the parity difference contributed 161 million dollars to exports. Unit export value was 1.41 dollars.

LIMITED INCREASE IN MARKET RISKS

Turkish Exporters Assembly (TİM) President Mustafa Gültepe reminded that they started to publish the TİM Export Market Monitor (IPM) for the last 2 months in order to facilitate the monitoring of the conditions and risks that create demand in important markets. Gültepe stated that although the TİM Export Demand Index decreased by 0.9 percent in February, it maintained its limited optimism at 100.1 points, and pointed out that the TİM Market Resilience Index, which measures the resistance of the markets against risks, decreased by 0.3 percent to 99.4 points. Gültepe explained that the risks in the markets have increased at a limited level due to the delay in expansionary monetary policy steps and the failure to suppress inflation.

AUTOMOTIVE INDUSTRY IS THE LEADER AGAIN

The automotive industry was recorded as the sector with the highest exports last month, with 3.2 billion dollars. This sector was followed by chemicals and products with 3 billion dollars, and the ready-made clothing and apparel sector with 1.6 billion dollars. The sector that increased its exports the most in March was the ship, yacht and services sector with 32.3 percent. The exports of the industrial group, which realizes 71.9 percent of Turkey’s total exports, were calculated as 16.2 billion dollars with a decrease of 5.5 percent last month. In the agricultural group, which constitutes 13.7 percent of total exports in March, exports of 3.1 billion dollars were made, with a decrease of 2.9 percent.

IMPORTS DECREASED BY 12.6% IN 3 MONTHS

According to the data of the Ministry of Commerce; In the first quarter of 2024, exports increased by 3.6 percent and reached 63 billion 656 million dollars. In the same period, imports decreased by 12.6 percent to 84 billion 128 million dollars. Foreign trade deficit in the first quarter compared to the same period last year; It decreased by 41.2 percent, from 34 billion 798 million dollars to 20 billion 472 million dollars.