According to the July GTS (General trade system) foreign trade data announced by TURKSTAT in cooperation with the Ministry of Commerce; Turkey's exports increased by 10.2% to 16.42 billion USD in July 2021 compared to the same period of the previous year, while imports increased by 16.8% to 20.69 billion USD in the same period. Thus, the foreign trade deficit increased by 51.3% between July 2020 and July 2021 and became 4.28 billion USD. The ratio of exports to imports decreased from 84% to 79.3% in the said period.
While Germany was the country to which we exported the most in July, it was followed by the US, England and Italy. Exports to 27 countries that make up the European Union increased by 12.8% and reached 7.02 billion USD, while the share of the EU in our total exports increased from 41.8% to 42.8%. In import items; China took the first place in July 2021, followed by Russia, Germany and the US. While the share of intermediate goods (raw materials) in total imports increased in July, the share of capital and consumption goods decreased. While the share of exports of high-tech products in our total exports was 2.9%, the share of the same group's imports in our total imports was 13.1%.
According to STS (Special Trade System), Turkey's exports increased by 10.4% to 15.62 billion USD in July 2021 compared to the same period of the previous year, while imports increased by 15.7% to 19.84 billion USD in the same period. The ratio of exports to imports was 78.7% in the said period.
It is observed that the most important factor in imports to be higher than exports in monthly periods is the import of intermediate goods, and in this item, the effect created by the increasing raw material prices on a global scale. Although the strong annual increase in exports continues to be effective especially in the first 7 months of the year, we can say that the improvement in foreign demand conditions and the alleviation of the bad effects of the last year provide advantages in this regard. Against this; Although gold imports are largely eliminated, the ongoing impact from raw material needs and energy imports still continues. We expect the price effects here to be a factor in the increase in imports. In terms of Turkey; While the problems in the supply chains and the search for markets within the framework of different alternatives create a cost disadvantage on the import side, it is also advantageous in certain business lines due to the market diversification strategy. In particular, the necessity of Turkey to add expertise in capital-intensive production items to its expertise in labor-intensive items is important in terms of competition in global markets and its transformation into an economy with a sustainable current account surplus.
In addition to the macro prudential measures taken to limit domestic demand, the possibility of applying restriction criteria in consumer loans in the future may limit the imports of consumer goods. However, we expect intermediate goods and energy imports to be on an increasing trend due to the need for production and use. Economic growth in our export partners could continue and support external demand if Covid variants do not cause new restrictions. At the same time, the attractiveness of Turkish goods in international markets due to the cheapness of TRY can support our exports in terms of volume.
Kaynak Tera Yatırım-Enver Erkan
Hibya Haber Ajansı