Trade gap narrows unexpectedly
Posted by meb at November 3rd, 2008
Turkey’s trade deficit shrank unexpectedly in September as a weaker Turkish lira, or YTL, helped boost exports to neighboring countries and reduce demand for imported goods.
The gap narrowed to $5 billion from $5.4 billion a year earlier, Turkish Statistical Institute, or TÜİK, in Ankara said on its Web site late Friday. The deficit, which narrowed for the first time since April 2007, was forecast at $5.8 billion, according to the median estimate of 12 economists surveyed by Bloomberg.
“Our exports are growing and at the same time capital goods and consumption imports are losing momentum,” said Ozan Gazitürk, an economist at Şekerbank in Istanbul. “Turkish companies have less tendency to invest and buy imports.”
The YTL fell 6.7 percent against the dollar in September, making Turkish exports more competitive in terms of price. Manufacturers are seeking more customers for their goods in markets in the Gulf and Africa at a time when consumer demand is slowing in the European Union, the destination for about two thirds of Turkish exports.
Exports jumped 42 percent to $12.8 billion, TÜİK said, outpacing an increase in imports, which rose 24 percent to $17.9 billion.
Turkey’s economic growth is slowing along with the EU, curbing demand for imported goods. The economy expanded at 1.9 percent in the second quarter, the slowest since the country emerged from a recession six years ago. That trend is expected to continue in the second half, Economy Minister Mehmet Şimşek said yesterday. Turkey’s trade gap has expanded in the past 18 months as oil prices rose to a record and a stronger currency made imports cheaper.
source: Turkish Daily News
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