Cheap exports spur record foreign trade deficit


Although exports hit an all-time high this year, foreign trade deficit has grown, especially since the beginning of 2022. The hike in unit values caused by commodity-driven costs affects exports and imports. Although export value continues to increase due to cost-driven prices, the surge in imports is higher than exports as a result of the hike in energy prices. The surge in the annualized foreign trade deficit (FTD) hit 138% in October, the highest level since the 1997 crisis. 10-month imports reached USD 300.55bn. Imports will break a record at USD 357bn at the end of 2022, if they reach the same levels recorded in November and December 2021. The 10-month FTD increase reached 168.5%. The 10-month FTD totaled USD 91.1bn, the highest level in the republic’s history. The FTD jumped over 400% in October, year-over-year. The FTD exceeded USD 100bn for the first time after 11 years. The terms of trade hit an all-time low of 73, indicating the record cheapness of exports.

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