Turkish trade deficit narrows by 25 pct

ANKARA

Turkey’s foreign trade deficit narrowed by more than a quarter last month as exports rose and energy costs fell, the Turkish Statistical Institute (TÜİK) said on June 30.

“Britain climbed to first place for Turkey’s export destinations in May, which will lead to negative effects on the export volume because of the Brexit,” it said.

In May, Turkey exported $1.3 billion worth of goods and services to Britain, followed by Germany ($1.1 billion) and Iran ($673 million), according to TÜİK.

It imported $2 billion worth of goods and services from China, the largest importer.

Erkan said last week’s vote for Britain to leave the EU will cause an economic slowdown in Europe and the U.K. and domestic demand across the EU is likely to decline significantly.

“Turkish exports will be affected negatively,” he said. “The declining trade deficit is caused by changes in global prices, especially commodity and energy prices. On the other hand, we will watch the effects of softening relations with Russia and Israel.”