Turkey's trade deficit tumbled 28.4 percent in 2018 to $55.0 billion, data released on Friday showed, with exports rising and imports declining as a currency crisis drove up the cost of imports and weakened domestic demand. "We have seen the positive impact of economic rebalancing on exports and imports, we predict that this impact will continue in 2019," Trade Minister Ruhsar Pekcan told a news conference.
Turkey's economic growth dwindled to 1.6 percent year-on-year in the third quarter last year. That was its worst performance in two years, and has deepened concern that Turkey is now entering recession. Concerns over central bank independence and a rift with the United States sparked a sell-off in the lira last year and pushed inflation above 25 percent, slowing demand. The currency and economic indicators, which have hit multiple-year lows, have regained some ground but the impact of the crisis will persist, according to analysts.
Trade ministry data showed that exports amounted to $168.1 billion last year - with Germany, the United Kingdom and Italy the largest customers. Imports stood at $223.1 billion. The government expects exports to rise to $182 billion and imports to rise to $244 billion in 2019, according to the new economic programme, its three-year policy roadmap.
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