In March, the current account incurred a record deficit of USD 9.8 billion. The result overshot market analysts' expectations of a USD 8.2 billion shortfall, but exceeded the revised USD 6.3 billion deficit recorded in February. As a result, the current account deficit over the last 12 months continues to widen, reaching USD 60.5 billion in March (approximately 7.5% of GDP), up from a USD 48.4 billion deficit recorded in the full year 2010 (6.6% of GDP). The rapid deterioration in the external account reflects an increasing disparity between domestic demand and GDP growth, which has been driven by surging imports. The buoyant pace of import growth is raising concerns among Turkish monetary authorities, who wish to rebalance GDP expansion via measures designed to slow domestic demand, and thus increase the contribution from net exports to overall growth. The current policy mix aims to curb short-term capital inflows and decelerate domestic credit growth. Rising oil prices are also contributing to the external imbalance, as oil imports represent nearly 20% of total Turkish imports. Despite authorities' efforts, imports continue to skyrocketing, rising 45.4% over March 2010 in USD terms (February: +49.2% year-on-year), while exports decelerated somewhat, adding a more subdued 17.0% over the same period (February: +19.5% yoy). As a result, the trade deficit increased to USD 68.1 billion in the 12-month period to March 2011, which is a record high.
Turkey Current Account
Rising oil prices and buoyant domestic demand stoke record current account deficit in March
May 11, 2011
Looking for forecasts related to Current Account in Turkey? Download a sample report now.
Turkey Economic News
October 13, 2016
The current account balance recorded a USD 1.8 billion deficit in August (July: USD 2.7 billion deficit).
October 10, 2016
In August, industrial production expanded a calendar-adjusted 2.2% compared to the same month last year.
October 3, 2016
The Manufacturing Purchasing Managers’ Index (PMI), produced by the Istanbul Chamber of Industry (ICI) and IHS Markit, increased slightly to 48.3 in September from August’s 47.0, which had marked a multi-year low.
October 3, 2016
In September, consumer prices increased 0.18% over the previous month.
September 26, 2016
The Real Sector Confidence Index published by the Central Bank increased from August’s 103.6 to 106.5 in September.