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Trade Deficit Soars to $1.808 Billion From $497 Million Last Year

Trade Deficit Soars to $1.808 Billion From $497 Million Last Year

The Turkish Statistical Institute said on Friday that the trade deficit rose to US$1.808 billion in October from US$497 million in the same month last year, indicating a four folds increase on an annual basis.

Seasonally and calendar-adjusted exports decreased by a monthly 0.5 percent when compared with September. Imports increased by 3.6 percent.

Turkey’s economy is emerging from a severe downturn caused by a currency crisis in the summer of 2018 in which it lost 30 percent of its value against the American Dollar. It also continued to fluctuate this year and lost around 8 percent.

However, Turkey could experience greater stability in 2020, said the credit rating agency Fitch Ratings.

“Fitch expects the recovery and rebalancing of the economy to continue, with growth strengthening, inflation falling and the current account deficit contained,” the agency said in a report on the outlook of emerging European countries.”

Further, Turkey’s Central Bank announced Friday that the Turkish lira fluctuation dropped and interest rate relapsed with the decline of inflation. Finance Minister Berat Albayrak expected the Turkish economy to grow by 5 percent in Q4 of this year.

A report issued by the bank affirmed that the global growth forecasts showed a tendency towards decline, as the risk factors appear. It added that the fluctuation in foreign currencies against the lira dropped with the remarkable relapse in interest rates.

Further, Turkey’s leading banking and financial institutions inked a deal to buy 85.05 percent of credit rating agency JCR Eurasia.

According to the association, the new partnership will determine the creditworthiness of companies wishing to borrow from financial markets, which would help the use of financial resources more efficiently.

Borsa Istanbul will hold 18.50 percent of the company, while Japan Credit Rating Agency will hold 14.95 percent.