Türkiye’s trade deficit narrows 15.7% in first five months of 2026

Türkiye’s foreign trade deficit narrowed by 15.7% year-on-year to $42.7 billion in the first five months of 2026, Trade Minister Omer Bolat announced on Thursday. Speaking at a news conference in Ankara, Bolat said exports fell 9.3% to $22.5 billion in May, while imports dropped 10.7% to $28.1 billion. “In May 2025, we broke the republic’s monthly export record with $24.8 billion. Public holidays in May naturally had a negative impact on exports, but they also reduced imports and the foreign trade deficit,” he said.

Annualized figures

Bolat noted that annualized exports reached $273.5 billion, while annualized imports rose 4.2% to $367.2 billion. The annualized foreign trade deficit stood at $93.65 billion, only $1.45 billion above the end-2025 level. “However, we will make the real assessment after completing the first half of the year,” he said. The export-import coverage ratio stood at 74.5%. Imports were restrained by lower gold and automotive imports, while oil imports rose by nearly $2.5 billion. Natural gas imports remained broadly unchanged. Medium-high and high-technology products accounted for 44% of total exports.

Sectoral and regional performance

The EU remained Türkiye’s largest export market, with shipments rising 0.6% to $48.6 billion, accounting for 43% of total exports. Germany was the top destination, followed by the US, UK, Italy, France, and Iraq. Exports to Gulf countries recovered in April and May after a sharp drop in March due to regional conflicts. Defense industry exports posted the largest rise, jumping $943 million, followed by ship exports ($683 million), electrical machinery ($604 million), motor vehicles ($445 million), and fruit ($322 million). Bolat also noted that services exports reached $122.6 billion last year, generating a $63.5 billion surplus, and Ukraine is expected to approve a free trade agreement with Türkiye soon.