Türkiye Sees Trade Deficit Widen Despite Export Growth in July

David Bergström | AA

Türkiye's exports increased by 2.9% to $25.62 billion in July, while imports rose faster by 5.1%, widening the trade deficit to $7.34 billion, according to new official data.

Türkiye has experienced a 2.9% increase in exports in July, bringing the total to $25.62 billion, according to official figures.

This growth came as imports expanded at a more rapid rate of 5.1%, totaling $32.97 billion for the month. This imbalance resulted in the foreign trade deficit widening by 13.6% to $7.34 billion compared to the previous year.

The official data, released from the Turkish Statistical Institute (TurkStat) and the Trade Ministry, highlight the persistent trade challenges Türkiye faces.

Key Performance Indicators in Detail

The export-to-import coverage ratio has decreased from 79.4% in July 2025 to 77.7% in the current year. When excluding energy products and non-monetary gold, the picture shifts slightly, with exports growing by 3.1% to $23.79 billion and imports rising by 3.6% to $26.19 billion.

Without these categories, the foreign trade deficit was $2.41 billion, showing a coverage ratio of 90.8%. Adjustments for seasonal and calendar factors show exports increasing by 2.6% from June, while imports decreased by 7.2%.

In terms of sectors, manufacturing products dominated, making up 94.4% of Türkiye’s total exports. Agricultural activities and the mining sector contributed 3% and 1.8%, respectively.

Global Market Dynamics

Germany, the United States, and the United Kingdom stood out as Türkiye’s top export destinations in July. German markets received $2.04 billion worth of Turkish goods, whereas the US imported $1.68 billion, and the UK took in $1.35 billion.

Concurrently, China emerged as the largest source of Türkiye's imports, valued at $5.04 billion, followed by Russia at $3.23 billion and Germany at $2.52 billion.

High-technology products accounted for 4.4% of manufacturing exports, with their value increasing by 4.7% to nearly $1.06 billion compared to previous figures.

Türkiye's Economic Strategy Amid Trade Challenges

The rising trade deficit highlights the pressing need for policy adjustments to balance economic growth with trade equity. As Türkiye seeks to enhance its export capacity, there lies a crucial opportunity for municipal governments to support sectors that require less imported material.

Municipalities might consider fostering local manufacturing innovations or investments in technological sectors that can further bridge the export-import gap. By optimizing local resources, cities can become pivotal players in Türkiye's broader economic strategy.

With cities like Istanbul central to export activities, strategic urban policies can stimulate these dynamics further, translating national economic goals into actionable urban development initiatives.

Questions That Matter

What was Türkiye's export increase in July?

Türkiye's exports rose by 2.9% in July, reaching $25.62 billion according to official data released on August 28, 2026.

What is Türkiye's largest export market in July?

Türkiye's largest export market in July was Germany, which received goods worth $2.04 billion, followed by the US and the UK.