Turkey’s trade deficit jumped to a record level in July, driven by rising energy costs.
The monthly deficit came in at $10.7 billion, higher than the average estimate of $10.6 billion and the largest since records began in 1984.
The January-July deficit was $62.2 billion, a 143.7 percent increase from a year earlier, according to the statistics office.
Turkish policymakers are trying to boost growth with especially loose monetary policy, hoping that cheap credit will find its way into manufacturing and exports.
But high levels of loan growth and strong domestic demand have also boosted Turkish imports, increasing demand for dollars.
The outlook for the foreign trade balance has worsened after the war in Ukraine, sending energy prices to a record high.
Russia, a key source of crude oil and natural gas, allowed Turkey to pay in rubles, but the details of the deal between Erdogan and Putin in August remain secret.
Monthly exports last month rose 13.4% from a year earlier to $18.6 billion, while imports rose 41.4% to $29.2 billion.
Imports of gold and precious metals rose 600% to $2 billion.
Source: Capital
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