Trade surplus tilts to deficit, amounting to $6.6 billion in May, reports TÜİK
In May 2025, Turkey's trade activities showed a notable growth trend, with exports reaching $24.8 billion, marking a 2.6% year-on-year increase. This uptick was primarily driven by a strong performance in the European and Middle Eastern markets.
Germany emerged as Turkey's largest export destination, with goods worth approximately $2.1 to $2.96 billion being shipped to the country. The United Kingdom followed closely, with exports valued at around $1.54 billion, and the United States and Italy rounding off the top four, each accounting for over $1.5 billion in exports. Iraq, as the fifth largest export market, imported over $1.1 billion worth of Turkish goods. Collectively, these top five countries accounted for about 30.1% of Turkey's total exports for the month.
On the import side, Turkey continued to rely heavily on Asian and Eurasian countries. China was the leading source of imports, with shipments totaling around $4.31 billion. Russia came in second, supplying goods valued at approximately $3.26 billion, and Germany was the third-largest import partner, with imports worth near $2.69 billion.
The trade deficit for May 2025 was approximately $6.6 billion, slightly higher than earlier estimates and the deficit in May 2024. However, this was the smallest monthly trade gap since October 2024. The cumulative trade deficit for the first five months of 2025 rose to $41.26 billion, up from $36.62 billion in the same period of 2024.
The growth in imports, particularly consumer goods, capital goods, and intermediate goods, contributed to the trade deficit. Consumer goods imports increased by 12.8% from May 2024, reaching $5.6 billion. Capital goods imports rose by 2.1% annually to $4.6 billion, while intermediate goods imports increased by 0.7% to $21.3 billion.
Despite the persistent trade deficit, there were signs of improvement. For instance, the foreign trade deficit in the January-May period widened by 12.7% from the same period in 2024, amounting to $41.25 billion. However, this was a slower rate of increase compared to the 18.1% expansion seen in the same period in 2024.
Moreover, the share of medium-high tech goods in Turkey's manufacturing sector climbed 10.8% year-on-year to 38.9%, and the share of high-tech goods rose by 7% annually to 4%. These increases indicate a growing emphasis on technology-driven exports.
In conclusion, Turkey's trade in May 2025 was characterised by growing exports led by European and Middle Eastern partners, alongside continued heavy reliance on imports from Asian and Eurasian countries. Despite improvements, the significant trade deficit remains a challenge for the Turkish economy.
In the context of Turkey's increasing trade activities, the finance sector might observe an upsurge in investments as exports continue to expand, especially towards European countries like Germany. On the other hand, the industry sector, particularly manufacturing, could see more emphasis on the production of medium-high tech and high-tech goods to align with the growing demand for technology-driven exports.
