Turkish exports almost reached $10 billion last month while global pandemic has not over yet, decreases 40.9% year-on-year, as Turkish preliminary data released by the Trade Ministry. Exports are reported increased by 10.84% compared to April, and contracted 40.88% to $9.96 billion year-on-year. Trade Minister Ruhsar Pekcan pointed out that the country’s export fell due to high-base effects in 2019, lower external demand, and bank holidays. With the leanest figure of year-on-year in May compares to April, Minister Pekcan said in social media that the worst had already passed, and Turkey already begins its recovery.
Data also show imports decreased by 27.7% to $13.4 billion year-on-year. The minister explained investment goods and intermediate imports cover 91.2% of the total, denoting a rise in production and expanding exports for the future. Pekcan indicating the country’s export/import coverage ratio has a hike to 74.3% year-on-year from 66.3% in May 2019.
Last month, data shows an approximately 34% decline in the annual foreign trade volume, to the amount of around $23.4 billion. The foreign trade deficit in May reaching $3.4 billion, doubling the figures year-on-year in 2019, but the exports counted on a working-day basis in May surged 28.5% compared to April, reaching $540.5 million, since there was only 16 official working days in May, 8 days less than in May 2019, due to coronavirus lockdowns, Eid Al-Fitr and Turkish Youth and Sports Day.
As a result of the ongoing global pandemic, demand from the country’s main export markets, specifically in the European region, reduced to an unparalleled level. Exports to the European Union, the country’s main export market with 45% share, soared 17.3% in May, compared to the previous month.
The Eurozone countries record a GDP decline of 3.8% on Q1 2020, the worst figure in the history of released quarterly data, began in 1995. The United States’ economy contracted 5% in the same period. Emphasizing that the economy’s main sectors have seen a revival in exports as compared to previous month, Trade Minister Peckan said Turkey’s exports in the automotive sector soar as high as 95.5%, ready-wear apparel sector rose 45.5%, textile hike 35.5% and defence sector steadily improving in 33.9%.
Germany, the United States and Iraq being the top three export destination countries in the previous months, and Turkish exports reached a total of 206 overseas markets in May. Turkey’s import countries top three are China, Germany and Russia. In the month of April, Turkey’s exports listed contraction in export as much as 55% to the United Kingdom, 50.2% to France, 38.1% to Belgium, 37.2% to Canada, 35.8% to Russia and 29.3% to the United States compared on the month before. In May, Turkey’s exports recovered as much as 71.5% to France market, 57.9% to the country of Belgium, 55.3% to Canada market, 54.7% are the fourth most recovering export to the United Kingdom, 45.6% to the United States and 15% to Russia.
