Turkey’s Car Demand Rises as Chip Crisis Eases Impact on Trade Deficit

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Turkey’s foreign trade deficit grew to $8.57 billion in March, marking a 3.7% increase from last year. This can be attributed to the nation’s demand for vehicles, as the global semiconductor shortage begins to abate. With the Turkish people looking to gold as a hedge against inflation and the devaluing lira, imports of the precious metal surged by 63%.

President Recep Tayyip Erdogan has encouraged lower interest rates in a bid to stimulate domestic production, reduce reliance on imports and decrease inflation. Unfortunately, these policies have not led to the desired effects for Turkish manufacturers lacking the capacity to capitalize on cheaper export prices due to currency undervaluation.

The Trade Ministry is the governmental body in charge of overseeing the foreign trade in Turkey. Led by the Minister and various other experts, they are the primary driver of regulating and easing trade tensions with foreign nations, while simultaneously stimulating economic growth.

Mehmet Mus is the current Minister of Trade at the Trade Ministry in Turkey. During his tenure, he has implemented various policies to promote economic growth and stimulate the foreign trade in the region. He has aided in successfully bridging the trade deficit resulting from the increased demand for vehicles as the global chip crisis eases. He is also committed to further abating the financial concerns the nation is currently facing.