According to the GTS (General trade system) foreign trade data of May announced by TURKSTAT in cooperation with the Ministry of Trade; Turkey's exports in May of 2020, indicates a decrease of 40.9% compared to the same period of the previous year to 9.97 billion USD, while imports decreased by 27.8% in the same period amounted to 13.39 billion USD. Thus, the foreign trade deficit increased by 102.7% between May 2019 and May 2020 and reached 3.42 billion USD. The ratio of exports to imports fell from 90.9% to 74.5% in the mentioned period.
In May, Germany was the country that we export most, followed by the USA, the UK and France. While exports to 27 countries that make up the European Union decreased by 44.3% to 3.97 billion USD, it is seen that the share of the EU in our total exports decreased from 42.2% to 39.8%. In import items; China took the first place in May 2020, followed by Germany, Russia and the USA. While the share of capital goods in total imports increased in May, the share of consumption and intermediate (raw material) goods decreased. While the share of exports of high technology products in our total exports was 3.8%, the share of imports of the same group in our total imports was 12.3%.
According to STS (special trading system) data, Turkey's exports in May 2020 decreased by 40.8% compared to the same period of the previous year to 9.44 billion USD, while imports decreased by 28.3% in the same period to 12.77 billion USD. The ratio of exports to imports was 73.9% in the mentioned period.
The Covid-19 crisis, which started to take effect in March and caused bottom points to be seen in the April economic indicators, caused a sharp decline in exports, especially due to the collapse in foreign demand. Looking at the May data, it is observed that the stabilization in many economic indicators is also seen on the export side and the rate of contraction decreased. The recovery from this bottom, which was observed with the effect of partial openings, is expected to accelerate with economic openings in June. In contrast, global trade can find new norms in the context of aftershocks of the Covid-19 crisis and changing import / export balances. Within the framework of the reflections of the Trump administration's trade disputes with China and the EU, global trade may face a permanent volume contraction. On the import side, low oil prices and shrinking volume are observed. In the comparative figures compared to the same period of 2019, it is observed that exports are still in a more severe contraction compared to imports. Economic measures to reduce the damage effect of the coronavirus and the sustainability of economic normalization will also be the main determinants in trade trends. The most important risk of continuing economic normalization is a second wave of coronavirus, which is still worrying.
Source: Tera Menkul
Hibya News Agency