According to figures from the Turkish Statistical Institute, Turkey's foreign trade deficit fell by 5.5% in November, declining from $7.57 billion to $7.16 billion compared to November 2011. In spite of the decline appearing to be quite significant, it didn't impress investors as it was below market expectations. Turkish exports increased considerably in November, and there was also a significant increase in imports.
The figures show a 24.8% increase in exports, as they increased by 24.8% to reach $13.83 billion in November, while imports increased by 12.5% to reach $20.99 billion in the same month. When seasonally adjusted these figures become more pessimistic, showing exports contracting by 2.5% compared to October, while imports increased by 0.7% during the same period.
The fact that imports are increasing is reflected in accelerating consumer credit growth, and while it is still the first monthly increase in imports in six months this trend is expected to continue. The data shows the cumulative current account deficit only changed slightly when November figures are taken into account, from $85.3 billion in 2011 to $84.9 billion in 2012. Not surprisingly the share of exports to the European Union have declined, dropping from 44.6% in November 2011 to just 42.1% in November 2012.
Turkey's economic growth is also slowing down, as it was just 1.6% during the third quarter which is the slowest pace since the economy contracted in 2009. However the governor of the central bank in Turkey is confident 2013 will see more robust GDP growth as the government implements more measures to designed to increase economic expansion.