Türkiye's trade deficit widened some 0.5% year-over-year in September, Trade Minister Ömer Bolat said Wednesday, as both exports and imports fell.

The gap totaled $5.12 billion (TL 175.23 billion) as outbound shipments dropped 1.8% from a year ago to $22 billion, while imports slid by 1.4% to $27.1 billion, Bolat told in a news conference.

The deficit stood at $4.9 billion in August, the lowest in 34 months. Bolat said the gap had decreased in 11 out of the last 14 months.

In the third quarter of this year, the gap shrank by 33.8% compared to the same period last year to $17.4 billion, said the minister. Exports rose 4.4% to $66.6 billion, while imports fell 6.8% to $84 billion.

The export-import coverage ratio improved to 79.2%, up from 70.8% a year earlier.

Bolat attributed the fall in outbound shipments in September to the negative impact of the calendar effect, which he says reduced export performance by approximately $1 billion compared to the same period last year.

Energy exports also took a hit due to lower oil prices, which averaged $75 per barrel this September, compared to $94 per barrel the previous year, the minister said.

Energy exports thus dropped by 42.1%, a $713 million decrease, totaling $982 million last month, he noted.

Gold shipments also saw a significant decline. Unprocessed gold exports in September plummeted by 65.9% year-over-year to $188.3 million.

Excluding energy and gold, Türkiye's exports rose 3.3% year-over-year, totaling $20.8 billion in September, despite weaker global demand and calendar effects, Bolat said.

From January through September, overall exports rose by 3.2% to stand at $192.8 billion, while imports fell by 7.9% to stand at $252.9 billion, the data from the Turkish Exporters Assembly (TIM) showed.

The trade deficit narrowed by 31.5% to $60.1 billion during the first nine months.

Exports are among the priority areas the Turkish government seeks to rely on as they rebalance the economy's growth composition.

As part of its medium-term program, the government had set an export target of $267 billion for 2024. Shipments hit a record $256 billion in the whole of 2023.

The 12-month rolling exports totaled $261 billion as of September, a 3.5% increase from the previous year, while imports fell by 7.3% to $340.3 billion.

The trade gap shrank by 31% to $78.7 billion, the data showed. That marks a $43 billion decline from a year ago, said Treasury and Finance Minister Mehmet Şimşek.

"We expect the annual current account deficit to decrease to around $15 billion in August and remain at similar levels in September," Şimşek wrote on social media platform X.

The current account deficit fell below $20 billion in July, according to official data, compared to its peak of $57 billion in May 2023.

"As a result, the ratio of the annual current account deficit to GDP will drop below 1.5% in the third quarter," said Şimşek.

"The declining current account deficit reduces our external financing needs while supporting macro-financial stability, making a significant contribution to our primary goal of achieving lasting price stability."

Despite the slowdown in overall trade, the automotive industry set a record with $3.4 billion in exports last month, said TIM head Mustafa Gültepe.

It was followed by chemicals with $2.2 billion, ready-made garments with $1.6 billion, electrical-electronics with $1.48 billion, and the steel industry with $1.47 billion.

The sectors with the highest percentage increases in exports were dried fruits at 47%, defense and aerospace at 32%, shipbuilding and marine services at 31%, hazelnuts at 30% and automotive at 21%, Gültepe noted.