Turkish expectations for exports, imports surge

Expectations for exports and imports for the third quarter surged, according to a foreign trade survey by the Economy Ministry.

The index showed predictions for the path of exports increasing to 118 points from 107.3 points for the second quarter, Milliyet newspaper reported.

Predictions for imports rose to 113.1 from 101.6, according to the survey.

Turkey’s foreign trade deficit has widened significantly over the past year, contributing to a current account deficit that has reached 6.5 percent of gross domestic product. Investors in Turkey’s financial markets are concerned that the economy is overheating and heading for a hard landing. The central bank has raised interest rates by 500 basis points this year to help arrest a sell-off in the lira and an inflation rate that has reached 15.4 percent on the back of government stimulus.

The survey is based on current export and import orders.