Exports of goods and services support financial stability: VP Yılmaz

ANKARA

Increases in exports of goods and services contribute to reserve accumulation, financial stability and the disinflation process by reducing the current account deficit and the need for foreign currency, Vice President Cevdet Yılmaz said, welcoming the latest foreign trade data.

Exports rose by 13.8 percent in July from a year ago to $22.5 billion, hitting a historically high level for the month, while the foreign trade deficit shrank 42.3 percent to $7.24 billion.

The 12-month rolling exports totaled $261.5 billion, another record level for Türkiye, up by 3.4 percent on a yearly basis.

In the first seven months of 2024, exports grew 4.1 percent year-on-year to $148.8 billion.

Imports fell 8.4 percent to $198.6 billion, which led to a foreign trade deficit of $49.8 billion, down 32.5 percent from a year ago.

In an environment of political and macroeconomic stability and confidence, we will continue to maintain our export-oriented sustainable growth target in the medium-term program, which we will update in September, Yılmaz wrote on X.

He stressed that despite a period of sluggish demand in foreign markets, especially in Europe, Türkiye’s exports, which are an important indicator of the rebalancing policy in growth, continue to increase.

Commenting on the July foreign trade figures, Finance Minister Mehmet Şimşek said, “We expect a significant decline in the annual current account deficit in July.”

“We will make the sustainable current account deficit and gains in reserves permanent by accompanying cyclical factors with structural reforms,” he said.