Ankara values rising imports as new technologies enter country

by Erdal Tanas Karagol

Although imports provide competition in the country, enable new technologies and innovative products to enter the country and provide the raw material needed for the country's economy, on the other hand, when the amount of these items increases, it will also cause a foreign trade deficit and a current account deficit.

So, when we look at the main items that make up imports in the Turkish economy, what are the prominent ones?

When we look at the items that constitute the total imports in the Turkish economy in 2024, it consists of three items: investment-capital goods, raw materials, i.e. intermediate goods, and consumer goods.

The amount of goods that will constitute the total imports worth 344 billion dollars in 2024 is as follows;

Raw materials, or intermediate goods, constitute the largest share of total imports with 238.3 billion dollars.

Investment-capital goods come in second with 52.7 billion dollars, while consumer goods come in third with 54.4 billion dollars.

This table necessitates that we focus on the items representing raw materials, that is, intermediate goods, and gradually reduce these items.

Reduction of imports

Reducing imports will make significant contributions to reducing the foreign trade deficit and thus the current account deficit and even the creation of a current account surplus.

In addition, reducing imports causes an increase in domestic production and foreign exchange reserves.

The production of raw materials, namely intermediate goods, which have a significant share in imports, in the country will both reduce imports and provide significant increases in production through the production of these goods.

It is clear that the resources paid abroad for a significant amount of raw materials every year are a significant loss of resources for the economy. Keeping this resource in the country, using it for investment and therefore for production will provide significant increases in the country's GDP and per capita income.

Reducing external dependency on energy, which has an important place in imports, will make significant contributions to reducing foreign trade and eliminating the threat of a current account deficit.

Therefore, reducing the import of raw materials, namely intermediate goods, will ensure sustainable economic growth and strengthen economic independence.