Turkey: Annual current account deficit shrinks for first time in two years
January 11, 2012
In November, the current account balance incurred a deficit of USD 5.2 billion. The result was above the USD 4.2 billion deficit recorded in October but came in virtually in line with market expectations, which had anticipated the deficit to reach USD 5.3 billion. Despite the deterioration in the monthly figure, the annual current account deficit narrowed for the first time in two years, reaching USD 77.8 billion in November, down from USD 78.6 billion in the previous month. Imports continue to decelerate gradually as Turkish authorities try to redirect economic growth towards domestic sources. Imports rose 9.7% in USD terms over November 2010 (October: +16.2% year-on-year), while exports expanded a stronger 18.7% over the same period the previous year (October: +10.6% yoy). As a result, the trade deficit narrowed from USD 6.5 billion in October to USD 6.3 billion, the lowest level recorded since February.