Turkish trade gap widens more than five-fold on energy bill

Turkey’s foreign trade deficit widened for the 12th consecutive month in October, driven by a surge in energy bill.

Imports rose 31.9% from a year earlier to $29.3 billion, taking the trade gap 430% higher to $8 billion according to preliminary data published by the Ministry of Trade on Wednesday.

Turkish companies’ shipments abroad rose by a meager 2.8% to $21.3 billion during the same period. The path in Turkey’s foreign trade imbalance shows the boost to exports from last year’s currency meltdown is fizzling out and inflation is catching up with producers.

At the same time, the global rally in oil and natural gas prices that began after Russia’s invasion of Ukraine is accelerating imports despite a visible slowdown in economic activity in the second half of the year. While preliminary data do not include a breakdown of all trade, they show that imports from Russia -- a major source of oil and gas for Turkey -- rose 107% from a year earlier to reach $5 billion, more than any other country.