Turkish exports inch up, imports plunge in January

Exports edged up by 3.5% year-on-year to $19.99 billion in January 2024, compared to the same month in 2023. However, this increase needs to be viewed in the context of a seasonally adjusted decline of 5.1% compared to December 2023. This suggests that underlying export momentum might be softening.

Imports, on the other hand, witnessed a much sharper decline of 22.0% year-on-year to $26.22 billion. This significant drop can be attributed to several factors, including a potential slowdown in domestic demand and a cautious approach by businesses due to global economic uncertainties.

The positive aspect of this mixed trade picture is the substantial decrease in the foreign trade deficit. Compared to January 2023, the deficit contracted by 56.4% to stand at $6.23 billion in January 2024. This improvement is primarily driven by the decline in imports. Additionally, the ratio of exports covering imports reached 76.2% in January 2024, compared to 57.5% in the same month of the previous year, indicating a positive shift in Türkiye's trade balance.

Excluding energy products and non-monetary gold, exports still witnessed a modest increase of 3.0% year-on-year, while imports showed a smaller decline of 6.2%. This suggests that the core manufacturing sector is showing some resilience.

Germany remained the top export partner for Türkiye with a value of $1.76 billion, followed by the United States, Iraq, the United Kingdom, and Italy.

Russia topped the list of import partners with a value of $4.32 billion, followed by China, Germany, the United States, and Italy. Notably, the share of imports from Russia has decreased compared to previous periods, potentially reflecting the ongoing geopolitical situation.

Manufacturing industries continued to be the backbone of Turkish exports, contributing 93.0% to the total. However, the share of high-tech products within these exports remained relatively low at 3.5%, highlighting the need for further investment and development in this area.

In conclusion, the January 2024 data on Turkish foreign trade presents a mixed picture. While the slight increase in exports and the significant decrease in the trade deficit are positive signs, the underlying trends and the decline in imports warrant further observation. The continued focus on boosting exports, particularly in high-tech sectors, and diversifying trading partners will be crucial for Türkiye's long-term economic health. (ILKHA)