Turkey is hopeful of receiving better ratings from international credit evaluators, as its foreign trade deficit fell 31% in October compared to October 2011. Figures from the Turkish Statistical Institute show exports grew by 11.6% in October year on year, while imports declined by 5.6% during the same period.
It’s hoped the fall in the foreign trade balance will help the current account deficit, and in turn this should strengthen the possibility that Turkey will receive investment level rating from another agency.
Turkey is hopeful that Moody’s will give the country an investment level rating during the next six months or so, as Fitch has already upgraded Turkey to investment level.
Quite a few experts were surprised that Moody’s didn’t choose to upgrade the country last month, especially considering how well its economy has done in recent years. Apparently Moody’s justified its decision over concerns about external imbalances and slowing domestic growth.
Export figures are also showing good growth, as data for October shows a volume worth nearly $13.3 billion, the highest monthly export figure to date. The last 12 months of exports have been worth a total of $149.8 billion, and Turkey is hopeful of breaking its annual export records by the end of the year.
The figures for the first 10 months of this year show exports were worth $126.3 billion, an 11.6% increase year on year. In spite of the improvement in exports, there are concerns that this is merely due to the amount of gold being bought by some countries, in particular Iran, and if gold is taken out of the equation then the export figures don’t look quite so impressive.
However Turkey is still taking substantial steps to open up new trade markets with other countries, especially those outside the European Union.