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UPDATE 1-Turkey Nov trade deficit $3.7 bln, beating f'cast

Published 12/30/2009, 10:21 AM
Updated 12/30/2009, 10:24 AM

* Deficit rises 38.4 percent year-on-year

* Exports fall 5.2 percent, while imports rise 4.5 pct

(Adds details, background)

ISTANBUL, Dec 30 (Reuters) - Turkey's trade deficit rose 38.4 percent year-on-year to $3.705 billion in November, official data showed on Wednesday, as imports climbed and showed a revival of domestic demand.

The deficit was higher than a Reuters poll forecast of $3.3 billion.

Exports fell 5.2 percent to $8.911 billion while imports rose 4.5 percent to $12.616 billion, the Turkish Statistics Institute said on its website.

The Turkish economy is showing signs of gradual recovery from a deep recession this year. Gross domestic product (GDP) shrank 3.3 percent year-on-year in the third quarter, having contracted 8.4 percent in the first nine months of the year as a whole.

The government has forecast growth of 3.5 percent for next year after the expected contraction of 6 percent this year.

During periods of strong growth Turkey typically runs a large trade deficit as it imports to meet demand from consumers and manufacturers that sell finished goods abroad.

The trade deficit for the January to November period fell 49.4 percent to $33.493 billion, the data showed.

The data showed 46.1 percent of Turkey's exports went to the European Union, compared with 48.4 percent in the same period last year.

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