Record Exports Help Turkey Close First Half of 2022 on a Strong Note
Turkey ended the first half of 2022 with record-breaking export performance. Monthly exports reached new highs throughout the January–June period. As a result, the country is firmly on track to meet its annual export target ahead of schedule.
However, the strong export momentum came alongside a widening trade deficit. Rising global energy prices, driven largely by Russia’s invasion of Ukraine, significantly increased import costs.
June Exports Reach All-Time Monthly High
Exports surged 18.5% year-over-year in June, reaching $23.4 billion, marking the highest monthly export figure ever recorded. Trade Minister Mehmet Muş announced the data during an event in Erzurum.
Meanwhile, imports rose nearly 40% year-over-year to $31.6 billion. Consequently, the foreign trade deficit expanded sharply.
Energy imports alone totaled $8.1 billion in June. As a result, the monthly trade deficit reached nearly $8.2 billion, representing a 184% increase compared to the same period last year. The deficit had peaked at a record $10.7 billion in May.
Energy Costs Drive Trade Deficit
According to the minister, energy prices played a decisive role in the growing deficit. In the first half of the year, Turkey’s energy imports jumped 155% year-over-year to $47.8 billion.
“Approximately 57% of total import growth stemmed from energy imports,” Muş said. Therefore, the current trade imbalance largely reflects global energy price pressures rather than weakening trade performance.
Excluding energy, the export-import coverage ratio reached 93.4%, highlighting the underlying strength of Turkey’s trade structure.
First-Half Trade Performance
June data lifted Turkey’s first-half exports to $126 billion, a 20% increase compared to the same period in 2021. At the same time, imports climbed 40.6% to $177.2 billion.
As a result, the trade deficit widened to $51.37 billion, up from $21.18 billion a year earlier.
Despite these challenges, Muş emphasized that export growth remained consistent. “In the first six months of 2022, we achieved the highest monthly export value every single month,” he said.
Export Target of $250 Billion in Sight
Turkey closed 2021 with exports totaling $225.4 billion. Both government officials and economists expect exports to reach $250 billion in 2022.
The rolling 12-month export figure reached $246.2 billion as of May, according to Muş. Therefore, the annual target appears achievable well before year-end.
Turkish Exporters Assembly (TIM) Chair Mustafa Gültepe echoed this outlook. He noted that exporters achieved record performance in 20 of the last 22 months.
“Preliminary forecasts show that we will maintain our momentum in the second half and reach the $250 billion target before year-end,” Gültepe said.
Sectoral Export Performance
In June, the chemicals industry led exports with $3.2 billion, marking a 34.6% annual increase. The automotive sector followed with $2.7 billion, while steel exports reached $2.3 billion.
The ready-to-wear sector generated $2 billion in exports. Meanwhile, the electric and electronics industry recorded $1.4 billion.
Notably, the defense and aviation sector posted the strongest growth. Exports surged 42.2% year-over-year to $315.1 million.
Key Export Markets
Germany remained Turkey’s top export destination, receiving $1.87 billion worth of goods in June. The United States followed with $1.55 billion, while Iraq ranked third with $1.2 billion.
Additionally, exports rose sharply to Romania, the United Arab Emirates, and South Africa. According to Gültepe, Turkey achieved export records in 18 countries, including Russia, South Korea, Argentina, and India.
Import Sources and Regional Trade
Russia remained Turkey’s largest import partner, with imports exceeding $5 billion, a 118.3% annual increase. China ranked second, followed by Germany.
Exports to European Union member states, which account for nearly half of Turkey’s exports, totaled $9.7 billion in June. Imports from the EU exceeded $8 billion.
Exports to Near and Middle Eastern countries reached $3.86 billion.
Expanding Exporter Base
Gültepe also highlighted growth in the exporter base. In June, 1,905 firms exported for the first time. Their combined export value reached approximately $80 million.
Despite global economic challenges driven by inflation and energy prices, Gültepe emphasized that Turkey continues to strengthen its economy through production and exports.
Source: Daily Sabah