Turkey's foreign trade at risk - Beacon

Latest

Wednesday, September 1, 2021

Turkey's foreign trade at risk


Turkey is seeking to narrow its trade gap with the rest of the world after a widening foreign trade deficit in July has pared an overall decrease in the trade gap so far this year.

As the deficit shrunk by an annual 4.7 percent to $25.5 billion in the first seven months. It had fallen by 11.4 percent to $21.2 billion in the first half of 2021.

After trade a year earlier was hit by the pandemic, Turkey's exports climbed 10.2% and imports rose 16.8% compared with July 2020. In the first seven months of the year, the trade deficit narrowed 4.7% to $25.48 billion.

The shortfall widened the current account deficit to more than 5 percent of GDP last year, exerting downward pressure on the value of the lira. The currency has dropped to successive record lows against the dollar and euro over the past two years.

Research from consultancy Capital Economics indicated that Turkey has entered a steep recession and predicted that the Turkish economy would shrink to an alarming rate.




No comments:

Post a Comment