Turkey's GDP net import intensity rises to all-time high

Business Materials 28 January 2012 12:21 (UTC +04:00)

Azerbaijan, Baku, Jan. 28 / Trend S.Isayev/

Turkey's GDP net import intensity rose to all time high as nominal import growth accelerated to around 40 percent - about twice as the rate of exports, new 2012 International Monetary Fund report said.

As a result, the current account deficit expanded from over 6 percent of GDP in 2010 to 9 percent of GDP in the first half of 2011.

Although energy accounts for the largest part of the trade deficit (around 4 percent of GDP on average recently), the non-energy balance contributed three-quarters of the deterioration.

These developments reflect a large decline in the private sector saving-investment balance that more than offset the improved public sector balance, in addition to continued substitution toward imports reflecting the recent considerably overvalued real exchange rate.