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In March, Turkey’s trade deficit jumped to $5.28bn from $2.17bn a year ago, according to the latest data from the trade ministry.
Exports plunged by 18% y/y but imports were up 2% y/y despite the cost of oil imports falling to $2.66bn from $3.71bn a year ago.
There was a 22% y/y rise in capital goods imports to $2.48bn and a 13% y/y increase in consumption goods imports to $1.85bn in March.
Intermediate goods exports were down 2% y/y to $14bn in the month.
5.2.2 Current account dynamics
Given the virus emergency, Turkey’s revenues of service exports such as tourism or air transportation will fall to zero in April. Capital and consumption goods imports will also fall sharply while intermediate goods exports should also decline as most industries have halted production. Oil imports are also set to decrease in April on falling demand.
Governing perceptions. It is worrying that the tourism minister talks of plans to send local tourists to vacation facilities at the end of May and expects foreign tourists to arrive in June.
Turkey’s current account deficit in February narrowed to $1.23bn from $1.61bn in January, the country’s central bank said on April 13.
21 TURKEY Country Report May 2020 www.intellinews.com
