Türkiye's foreign trade deficit narrowed by almost 50% in February, as exports grew and imports fell, official data showed Friday.

The shortfall fell by 44.2% from $12.13 billion in February 2023 to $6.77 billion, the Turkish Statistical Institute (TurkStat) said.

Exports grew 13.6% compared to a year ago to nearly $21.1 billion. Imports declined 9.2% year-over-year to $27.85 billion, the data showed.

Energy imports, which hold the biggest share in Türkiye's purchases from abroad, dropped by 14.6% to $5.75 billion.

Elaborating on the data, Trade Minister Ömer Bolat said Türkiye is achieving a more balanced structure of economic growth with the upward trend in exports and the decrease in imports.

"With this positive trend in foreign trade, it is expected that net goods and services exports will make a positive contribution to growth in the first quarter of 2024," Bolat said in a statement.

Excluding energy products and non-monetary gold, exports stood totaled $19.6 billion, up 12.3% from a year ago, and imports came in at $20.99 billion with a 5.2% increase in February.

The foreign trade deficit – excluding energy products and non-monetary gold – totaled $1.4 billion, the data showed.

For the January-February period, the gap decreased by 51% versus a year ago to $12.95 billion.

Outbound shipments totaled $41 billion, up by 8.5% year-over-year, and imports dropped by 16% to $54 billion over the two months, the TurkStat said.

Bolat stressed what he said was a significant decrease in the current account deficit due the narrowing foreign trade gap.

He recalled that the annualized current account deficit decreased by $22.6 billion this January compared to May 2023, reaching $37.5 billion.

The current account is the most complete measure of trade because it includes investment flows and trade in merchandise and services. A deficit means Türkiye is consuming more from overseas than it is selling abroad.

The February foreign trade reading signals a continued decline in the current account gap, said Bolat.

"With the increase in exports and the decrease in imports, macroeconomic stability is strengthened, and a more balanced structure of economic growth is achieved. With this positive trend in foreign trade, it is expected that net goods and services exports will make a positive contribution to growth in the first quarter of 2024," the minister noted.

Narrowing the current account gap and reaching a surplus were among the main goals of President Recep Tayyip Erdoğan's economic plan in recent years. However, sharply rising oil, gas and grain prices after Russia's invasion of Ukraine caused it to widen until mid-2023.

The deficit in 2023 as a whole came in at $45.2 billion, down from $48.8 billion in 2022.