Soaring energy prices pushed Turkey’s trade deficit to $8.24 billion in March, showing how the war in Ukraine is overwhelming government plans to support the lira with a substantial current-account surplus this year.
The quarterly shortfall stood at $26.4 billion, 138% wider than the same period a year ago, preliminary data published Monday by the Trade Ministry showed.
Russia ranked as the top exporter to Turkey at $4.1 billion, followed by China and Germany. Turkey’s leading export destinations were Germany, U.S. and Italy.
As a net energy importer Turkey’s been hard hit by this year’s 35% increase in Brent crude oil prices, while Russia’s invasion of Ukraine also derailed hopes for an improvement in hard-currency tourist inflows from the two countries.
Tuncay Ozilhan, head of the advisory council of Turkish business lobby Tusiad, warned last week that a growing current-account deficit may put pressure on the currency.
The Turkish lira, which depreciated 44% in 2021, is down 9.6% against the dollar this year, the second-worst emerging-market performer after Russia’s ruble.
Those losses, along with the surge in energy costs, pushed Turkish inflation to a fresh two-decade high last month above 61%.
In its policy statement last month, the central bank removed any reference to a current-account surplus target for this year. That was touted a key outcome of Turkey’s export-focused pivot but the rally in global commodity prices instead widened the foreign-trade gap.