Trade Minister Ömer Bolat announced that Turkey’s exports fell by 1.5% in February 2025, reaching $20.8 billion, compared to $21.1 billion in the same month of 2024.
Factors Behind the Export Decline
Bolat attributed the decline to parity and calendar effects:
- Calendar effect: Caused a $1 billion reduction.
- Parity effect: Led to a $330 million drop.
He also warned that the calendar effect will persist in March and noted that new U.S. trade policies toward China, Mexico, and Canada could negatively impact global trade.
Imports Increase, Foreign Trade Deficit Expands
Turkey’s imports rose by 3.8% in February, reaching $28.9 billion. The rise was driven by:
- A $1 billion increase in natural gas import costs due to global price hikes.
- Higher gold imports.
As a result, Turkey’s foreign trade deficit widened by 20.5% year-on-year, reaching $8.2 billion.
Expectations for a Cut in Rediscount Interest Rates
Bolat pointed to market expectations for an interest rate cut in the Central Bank’s March meeting and expressed hope for a corresponding reduction in rediscount interest rates.
- Rediscount rates were previously lowered from 35% to 28.35%.
- If the Central Bank reduces rates further, Bolat expects a downward adjustment in rediscount costs.
New Treasury-Backed Credit Support for Exporters
Bolat also announced a new Treasury-backed guarantee credit program, set to be launched in one to two weeks.
- The Export Development Corporation (İGE) is preparing a 36 billion TL guarantee package to support exporters.
- A new e-easy export platform has also been introduced to help exporters find new markets and expand internationally.
Source: Paraanaliz.com
Translation: Cem Cetinguc