Foreign Trade Data Shows Adjustments in 2023

The latest data from the Turkish Statistical Institute (TÜİK), unveiled on January 31, offers insights into Turkey’s foreign trade dynamics for the year 2023. While the overall picture reflects a nuanced trajectory, with both exports and imports experiencing slight adjustments, the figures provide valuable insights into the nation’s economic performance on the global stage.

In 2023, Turkey’s exports demonstrated resilience, inching up by 0.6 percent to reach a record high of $255.8 billion. This marginal increase underscores the continued competitiveness of Turkish goods in international markets, despite global economic uncertainties and geopolitical challenges. The export performance across various sectors showcases Turkey’s diverse export portfolio, highlighting the nation’s capacity to cater to a wide range of global demands.

On the import side, Turkey witnessed a modest decline, with imports totaling $361.8 billion, reflecting a decrease of 0.5 percent compared to the previous year. While this decline may indicate adjustments in domestic demand or shifts in global supply chains, it also underscores Turkey’s efforts to maintain a balanced trade profile and manage its external economic relationships effectively. One notable aspect of Turkey’s foreign trade in 2023 was the improvement in the export/import coverage ratio, which increased slightly from 69.9 percent in 2022 to 70.7 percent in 2023. This improvement signals a positive trend in trade efficiency and reflects Turkey’s ongoing efforts to enhance its trade competitiveness and reduce dependency on imports.

Looking ahead, Turkey’s government has outlined ambitious targets for the coming year, projecting that exports will rise to $267 billion in 2024, accompanied by a reduction in the foreign trade deficit to $105.8 billion. These targets underscore Turkey’s commitment to fostering sustainable economic growth and promoting export-led development strategies to drive the nation’s prosperity. In terms of trade partners, Germany emerged as Turkey’s largest export market in 2023, with exports amounting to $21 billion. The United States and Iraq followed closely, with exports of $14.8 billion and $12.8 billion, respectively. These figures underscore the importance of diversified export destinations for Turkey’s economic resilience and stability.

On the import side, Russia featured prominently as a major source, with imports amounting to $45.6 billion. China emerged as another significant import partner, with Turkey importing $44.98 billion worth of goods from the country. Germany ranked third among import partners, with imports totaling $28.7 billion, followed by Switzerland at $19.9 billion. In December 2023, Turkey’s export performance remained steady, recording a modest increase of 0.4 percent year-on-year, with exports reaching $23 billion. However, imports experienced a significant decline, plummeting by 11 percent compared to the previous year, totaling $29 billion. Consequently, the foreign trade deficit for December stood at $6 billion, reflecting a notable decrease of 37.8 percent compared to December 2022.

Excluding energy and gold, imports amounted to $21.7 billion in December, marking a 4.2 percent decrease year-on-year. Furthermore, excluding energy and gold, the foreign trade balance posted a surplus of $242 million for the month of December. These figures highlight the nuanced dynamics of Turkey’s foreign trade and underscore the importance of ongoing efforts to enhance trade efficiency and competitiveness in the global marketplace.