Turkey: Current account deficit continues to improve in October
December 11, 2014
The current account balance recorded a USD 2.0 billion deficit in October (September: USD 2.3 billion deficit), which marked an improvement over the USD 3.3 billion shortfall recorded in the same month last year. The print, however, slightly exceeded the USD 1.8 billion deficit expected by market analysts. The 12-month trailing current account deficit narrowed from USD 47.0 billion in September to USD 45.7 billion in October (roughly equivalent to 6.0% of GDP), which marked the lowest reading since December 2010.
In October, exports expanded 6.2% in USD terms over the same month last year, which matched the result tallied in the previous month. Conversely, imports contracted 1.8% annually in October, which marked a deterioration over September’s 0.3% decline. As a result of the healthy export rise and the drop in imports, the trade deficit came in at USD 4.7 billion in October, which marked an improvement over the USD 5.9 billion shortfall recorded in the same month last year.