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Iraq crisis hits Turkish economy

Iraq is Turkey's second leading export market, but trade routes to Baghdad and farther south are currently blocked because of ISIS's capture of Iraqi territory.
Turkish trucks and tankers, shuttling between Turkey and Iraq, queue on a road leading to the Habur border gate in southeastern Turkey, before crossing into Iraq with their goods, February 23, 2008. Turkey's exports to Iraq jumped nine percent last year to $2.8 billion and its influence can be felt across northern Iraq in the form of supermarkets, consumer goods, construction firms and traders from all over Turkey. To match feature TURKEY-IRAQ/CONFLICT REUTERS/Fatih Saribas  (TURKEY)  REUTERS/Fatih Saribas
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Iraq is Turkey's potentially most lucrative market in the world. According to data from the Assembly of Exporters, Germany and Iraq occupy the top two slots for consumption of Turkish imports. Last year, Turkey's exports to Germany totaled $13.3 billion, while those to Iraq amounted to $11.9 billion.

It is misleading, however, to look only at export figures. One must also keep an eye on imports. In 2013, Turkey imported $24.1 billion in goods from Germany — that is, twice the amount Turkey sold in Germany. Regarding Iraq, however, Turkey sold $11.9 billion in goods and bought only $200 million. This is why figures point to Iraq as being Turkey's potentially most lucrative and rapidly developing market.

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