WHILE EXPORTS GREW
13% IN 2012, IMPORTS
DECLINED BY 2% AND THE
FOREIGN TRADE DEFICIT
NARROWED BY 21%.
THE TURKISH ECONOMY
DEVELOPMENTS IN THE
REAL ECONOMY IN 2012
EXPORT-LED GROWTH COMPOSITION
Following solid growth performance
attained in the Turkish economy in 2010 and
2011, the year 2012 experienced the lagging
effects of the measures adopted from the
second half of 2011 by policymakers with
a view to bringing domestic demand under
control. Accordingly, domestic economic
activity lost pace and the growth rate,
registered as 9.8% in the first nine months
of 2011, dropped to 2.6% in the same period
of 2012. As consumption and investment
expenditures exhibited a weak outlook
in parallel to the rebalancing between
domestic and foreign demand in the first
three quarters of 2012, growth composition
weighed more heavily on the side of net
exports.
While exports grew 13% in 2012, imports
were slimmer by 2% and the foreign trade
deficit narrowed by 21%. The relatively
high exports were driven mainly by Turkey’s
diversified export destinations and gold
exports that reached USD 13.3 billion in
2012. While the share of EU countries in
Turkey’s export trade diminished, the Near
and Middle East countries, regarded as
alternative markets, increased their share
significantly.
As a result of the shrunken foreign trade
deficit, the 12-month accumulated current
deficit declined from USD 79 billion, the
peak point reached in October 2011, to
USD 49 billion in December 2012. Yet,
substantial financing of the current
deficit with short-term capital flows
continued to be a factor that contributed to
vulnerabilities in the economy.
INFLATION AND FC BASKET
(MONTHLY ANNUALIZED CHANGES) (%)
J 11
J 12
F 11
F 12
M 11
M 12
A 11
A 12
M 11
M 12
J 11
J 12
J 11
J 12
A 11
A 12
S 11
S 12
O 11
O 12
N 11
N 12
D 11
D 12
0
2
4
6
10
12
14
16
8
-10
-5
0
5
15
20
25
30
10
PPI
CPI
FC Basket (right axis)
22
İŞBANK
ANNUAL REPORT 2012
1...,14,15,16,17,18,19,20,21,22,23 25,26,27,28,29,30,31,32,33,34,...300