Türkiye's 12-month exports hit record 278 billion as inflation cools

Türkiye’s 12-month exports hit record $278 billion as inflation cools

Türkiye’s 12-month rolling exports reached a record $278 billion in June, the Trade Ministry announced Friday, underscoring the country’s resilience amid persistent inflationary pressures. Exports rose 21.9% year-on-year to $24.94 billion in June, the highest figure ever recorded for the month, while imports climbed 23.1% to $35.32 billion, widening the trade deficit to $10.38 billion. Annualised goods and services exports surpassed $400 billion for the first time, Trade Minister Ömer Bolat told reporters in Istanbul.

“As of the last 12 months, we have reached $278 billion in exports for the first time,” Bolat said during the press conference. The trade volume expanded 22.6% year-on-year to $60.26 billion, though the export-to-import coverage ratio slipped 0.8 percentage points to 70.6%. In the first six months of 2026, exports grew 3.6% to $136.06 billion, while imports rose 4.6% to $189.15 billion.

Germany remained Türkiye’s top export destination in June, purchasing $1.97 billion worth of goods, followed by the United States ($1.54 billion) and Italy ($1.36 billion). China led as the largest source of imports at $5.28 billion, ahead of Russia ($2.66 billion) and Germany ($2.47 billion). The European Union accounted for the largest share of both exports ($10.74 billion) and imports ($10.49 billion).

The export surge coincides with a broader shift in Türkiye’s economic structure. Intermediate goods accounted for $13.35 billion in exports and $25.22 billion in imports, while manufacturing dominated trade flows, comprising 93.7% of exports and 81.3% of imports. The data reflects the country’s growing integration into global supply chains, particularly in high-value sectors such as automotive, electronics, and textiles.

Separate figures released Friday showed Türkiye’s defense and aerospace exports exceeded $11 billion on a 12-month basis for the first time, with June exports rising 29.6% year-on-year to $802.8 million. Haluk Görgün, head of the Defense Industries Secretariat, said the sector’s first-half exports reached $4.67 billion, up 29.5% from the same period last year. “Our exports over the last 12 months exceeded the $11 billion level for the first time, crossing an important threshold,” Görgün said. The industry now supplies 178 countries, with NATO members accounting for 57.3% of sales.

The export momentum contrasts with broader economic challenges. The central bank’s preferred measure of core inflation is seen cooling, according to recent analysis, though policymakers remain cautious amid geopolitical tensions and currency volatility. Precious metals declined sharply in the first half of 2026 as expectations of Federal Reserve rate hikes—driven by inflation from the US-Israel-Iran war—sent investors toward dollar assets. Gold dropped 7.1% and silver plunged 17.4%, reflecting broader commodity market pressures.

Türkiye’s trade performance also highlights shifting global dynamics. A new report by the Economist found that America’s allies in NATO and the Indo-Pacific outspent the U.S. in purchasing power-adjusted defense budgets in 2025, marking the first time allied spending surpassed Washington’s. While the U.S. still leads in absolute terms, the shift underscores the growing role of regional powers in global security architectures.

For now, Türkiye’s export boom offers a rare bright spot in an otherwise turbulent economic landscape. With annualised exports crossing $400 billion for the first time, the country is positioning itself as a key node in global trade, even as inflation and geopolitical risks linger.