Exports increase more than 8 percent to $20 billion in July

ANKARA

Exports increased by 8.3 percent in July from a year ago after plunging nearly 11 percent in the previous month, the data from the Turkish Statistical Institute (TÜİK) have shown.

The country’s export revenues amounted to $20 billion last month.

The annual increase in imports was 10.5 percent to $32.3 billion, reversing the course from June, when imports declined by 17.5 percent from the same month of 2022 to $26.1 billion.

Consequently, Türkiye’s foreign trade deficit widened 14.2 percent compared with July 2022 to stand at $12.2 billion. As both exports and imports fell, the trade gap shrank nearly 37 percent year-on-year in June.

Excluding energy and gold imports, the country’s trade balance posted a deficit of $6 billion in July, said TÜİK on Aug. 29.

The export/import coverage ratio declined from 63.4 percent in July last year to 62.2 percent last month. Excluding energy and gold imports, the coverage ratio was 75.4 percent.

Germany was Türkiye’s largest export market in July with shipments to this country amounting to $1.7 billion, followed by Italy and the U.S. at $1.1 billion each.

On a seasonally and calendar adjected basis exports were down 4.5 percent from June, while imports were up 11.9 percent.

China topped the list of largest suppliers of goods as imports from China stood at $4.6 billion. Russia ranked second with $3.65 billion and Germany came third with $2.8 billion.

New loan package for exporters

Meanwhile, 11 public and private banks announced a $1 billion loan package for exporting companies.

The agreement for the package was signed between the Turkish Exporters’ Assembly (TİM) and lenders in Istanbul.

Loans with a grace period of six months will have an annual interest rate of 7.99 percent for U.S. dollar loans and 6.99 percent for euro loans.

The announcements came at a time when exporters were widely complaining about problems with accessing financing.

Under the scheme, exporting companies will be eligible for loans up to $5 million or 100 million Turkish Liras.

The maturity of the loans could be extended from 12 months up to 36 months.

Small and medium-sized enterprises (SMEs) will be eligible for financing up to $1 million, said Alpaslan Çakar, the board chair of the Banks Association of Türkiye (TBB).

The size of the $1 billion package could be further increased depending on demand from companies, according to Çakar.

“We are also working together with TİM on sustainable green loans. We will announce their details later,” he said.