Turkey’s foreign trade deficit widened by almost 300% on an annual basis last month, driven by costlier energy and other commodities.
The gap widened to $10.4 billion from $2.6 billion in September 2021, preliminary trade data on Tuesday showed. It reached a record $11.2 billion in August, according to official figures.
Turkey has faced worsening trade imbalances as the government pumps up economic growth through cheap loans. Its dependence on energy imports has left the country especially vulnerable after Russia’s invasion of Ukraine in February stoked the global cost of commodities.
The burden of Turkey’s massive energy bill has prompted authorities to seek ways to cope with the higher prices by covering a portion of its obligations for Russian natural gas in rubles. Turkish officials have also asked Russia to delay some payments due for the fuel, according to people familiar with the matter.
Turkey’s imports from Russia, its main energy supplier, saw an annual increase of 187% in September, according to Trade Ministry data.
Turkey Asks Russia for Delayed Gas Payments Amid Energy Crunch
Total imports in the first nine months of this year reached $272 billion, up from $193 billion in the same period of 2021. Trade Minister Mehmet Mus said on Tuesday that energy made up a third of Turkey’s imports.
While exports rose only 9.2% to $22.6 billion, Mus said the amount was an “all time high” for the month of September. Germany remained Turkey’s top destination for exports.
Still, imports accelerated at a much faster clip of 41.5% and reached $33 billion.
