ANKARA: Turkey’s trade volume has continued to post a decline in its third year now with the sharpest drop recorded in January with a minus 20.5 percent compared to that of the same period last year. Turkey, an emerging market, has reached its peak volume of trade in 2013 with a record 404 billion U.S. dollars in the combined value of its exports and imports. Yet, it has started to slide back since then, dropping to 400 billion dollars in 2014, and 351 billion in 2015.
The steepest decline was in January when the volume went down to 23 billion dollars, down from 29 billion dollars in January of 2015. The trade continued to bleed in February, according to the official government statistics, with a further 4.1 percent.
Turkey’s Development Ministry projected in the revised Medium-term Economic Program (OVP) that the trade volume will be 366 billion dollars by the end of 2016 and 419 billion the next. However, looking at the downward slope on the trade volume in consecutive months, it seems highly unlikely for Turkey to realize projected volume this year.
The opposition in Turkey blames the ruling Justice and Development Party (AKP) government for the decline in the country’s trade because of wrong policies with its neighbors and partners. “Out of 18 neighbors Turkey has over land and sea borders, their share in Turkey’s trade volume reduced from 40 percent to as low as 25 percent,” Umut Iran, former lawmaker with the main opposition Republican Peoples’ Party (CHP) said. He added that the lack of dialogue, stability and friendship in foreign policy has negative impact on economy and foreign trade.
The official figures for March are not available but the preliminary data on Tuesday from the Turkish Customs and Trade Ministry suggested the pace of decline has tapered off. The trade volume decreased by 1.8 percent in March to 30.6 billion dollars.
Turkey’s Economy Minister Mustafa Elitas told reporters on Wednesday in The Hague that the Central Bank must slash interest rates to open the way for business people. “Our share in the global trade is less than one percent,” he lamented, urging the bank to reduce interest rates dramatically.
