(MENAFN- AzerNews)
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.
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