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Iraq Imperils Turkish Exports as Deficit to Bonds at Risk

Turkey’s progress in cutting the biggest current-account deficit among emerging markets in Europe, the Middle East and Africa is under threat as fighting disrupts exports to neighboring Iraq.

Shipments to Iraq, Turkey’s biggest market after Germany, slid 21 percent in June from a year earlier, the Turkish Exporters Assembly said July 1. A prolonged crisis caused by the advance of Islamic State militants may weigh on the trade gap as exports drop and oil prices rise, the Turkish central bank said last week.