December 26, 2007	Wednesday	Zilhaj 15, 1428

ISTANBUL, Dec 25: Turkey’s November foreign trade deficit is seen increasing 22 per cent annually due to high fuel prices and high imports offsetting a rise in exports, a Reuters poll showed on Tuesday.

The survey of 12 analysts showed a median import forecast of $16.375 billion and an export forecast of $11.100 billion in November, giving a median deficit forecast of $5.175 billion.

Turkey’s trade deficit for November 2006 was $4.255 billion.October’s trade deficit this year was $5.633 billion.

While exports are near record levels, the high oil price and a resurgent demand for new cars is raising Turkey’s import bill, said Oyakbank Chief Economist Sengul Dagdeviren.

“We predict that the rise in automotive imports as well as capital goods has been continuing,” said Dagdeviren.

Higher fuel prices, which have risen 50 per cent nominally this year, widens major oil importer Turkey’s trade deficit.

Exporters, meanwhile, complain about the strength of the lira which, backed by very high interest rates, has firmed nearly 20 per cent this year.

Keeping the deficit slightly in check is a slowdown in domestic demand that is hitting mostly imported goods, Dagdeviren said.

Turkish industry uses a lot of imported semi-finished goods to manufacture their export products, seen as a structural obstacle to reducing the trade deficit.