Turkey: Current account continues to improve
November 15, 2012
In September, the current account balance incurred a deficit of USD 2.7 billion. The figure was below both the USD 6.4 billion deficit recorded in the same month last year as well as market expectations of a USD 3.0 billion deficit. As a result of the monthly figure, the 12-month trailing current account deficit narrowed for the 11th consecutive month, falling from USD 59.5 billion in August to USD 55.8 billion in September (approximately equivalent to 7.1% of GDP), the lowest deficit recorded since February 2011. Exports expanded 16.2% in USD terms over the same month last year, well above the 11.8% increase recorded in August. Meanwhile, imports contracted 5.9%, which followed the 5.3% decline observed in August. As a result, the trade deficit reached USD 5.3 billion in September, down from the USD 8.4 billion deficit recorded in the same month last year.