Türkiye’s foreign trade deficit grew significantly in April 2025, driven by a sharp rise in imports outpacing export growth, according to provisional data released by the Turkish Statistical Institute (TÜİK) and the Ministry of Trade.

Exports reached $20.801 billion, marking a 7.8% increase from April 2024, while imports surged by 12.7% to $32.893 billion, resulting in a trade deficit of $12.092 billion, up 22.3% from the previous year. The export-to-import coverage ratio fell to 63.2% from 66.1% a year earlier.

For the January-April 2025 period, exports totaled $86.113 billion, a 3.7% rise, while imports climbed 6.6% to $120.699 billion, leading to a trade deficit of $34.586 billion, a 14.7% increase compared to the same period in 2024. The export coverage ratio for this period was 71.3%, down from 73.4% in 2024.

Excluding energy products and non-monetary gold, exports in April rose by 11.1% to $19.253 billion, and imports increased by 13.5% to $25.420 billion, yielding a trade deficit of $6.166 billion. The export coverage ratio for this category was 75.7%, with the total trade volume reaching $44.673 billion, up 12.5%.

Germany remained Türkiye’s top export destination in April, with $1.769 billion in shipments, followed by the United Kingdom ($1.350 billion), the United States ($1.150 billion), Italy ($1.046 billion), and France ($851 million). These five countries accounted for 29.6% of total exports. For the January-April period, Germany led with $7.095 billion, followed by the UK, US, Italy, and Iraq, comprising 29.9% of exports.

China was the leading source of imports in April at $4.177 billion, followed by Russia ($3.582 billion), Germany ($2.773 billion), Switzerland ($1.775 billion), and Italy ($1.537 billion), representing 42.1% of total imports. Over January-April, China and Russia topped the list with $15.811 billion and $15.123 billion, respectively, followed by Germany, the US, and Italy, also accounting for 42.1% of imports.

Manufacturing industries dominated exports, making up 94.4% of the total in April and 93.8% for January-April, with high-tech products constituting just 3.5% of manufacturing exports. On the import side, manufacturing products comprised 81.8% in April and 78.7% for January-April, with high-tech products at 10.2% and 11.3%, respectively. Intermediate goods led imports at 69.4% in April, followed by capital goods (14.0%) and consumption goods (16.3%).

Under the special trade system, April exports rose 9.3% to $18.877 billion, and imports increased 14.5% to $30.473 billion, resulting in a trade deficit of $11.595 billion, up 24.2%. The export coverage ratio was 61.9%. For January-April, exports grew 4.3% to $78.332 billion, and imports rose 7.2% to $113.345 billion, with a trade deficit of $35.013 billion, up 14.2%.

Seasonally and calendar-adjusted data showed a 7.8% decline in exports from March to April 2025, while imports rose by 4.9%. Compared to April 2024, calendar-adjusted exports fell 0.7%, but imports increased 3.4%.

Trade Minister Ömer Bolat highlighted the export growth, noting that April’s $20.8 billion figure contributed to a record annualized export total of $264.9 billion. “Türkiye’s economy continues to grow through export-driven production, maintaining a stable trade and current account deficit,” Bolat said, emphasizing the resilience of Türkiye’s trade strategy amid global economic challenges.

However, the widening trade deficit, which hit a 21-month high in April, raises concerns about Türkiye’s import dependency, particularly in energy and high-tech sectors. With manufacturing driving exports and intermediate goods dominating imports, analysts suggest Türkiye’s trade policies, including its pivot toward high-value sectors like automotive and electronics, will be critical to balancing trade dynamics in the coming months. (ILKHA)