Turkey: Current account deficit continues to widen in August
October 11, 2013
The current account balance ran up a USD 2.0 billion deficit in August. The figure marks a deterioration over the USD 1.3 billion deficit recorded in the same month last year but came in slightly above market expectations of a USD 2.1 billion shortfall. As a result of the monthly figure, the 12-month trailing current account deficit widened from USD 56.0 billion in July to USD 56.7 billion in August (equivalent to approximately 6.5% of GDP).
Exports contracted 11.8% in USD terms over the same month last year. The print contrasts the 2.1% rise recorded in July and marks the largest drop since September 2009. Imports also decreased in August, falling 2.8% and contrasting July's 10.8% rise. As a result, the trade deficit reached USD 5.6 billion in August, which was a deterioration over the USD 4.5 billion shortfall recorded in the same month last year.
FocusEconomics Consensus Forecast panelists expect the current account deficit to reach 6.9% of GDP this year. For 2014, the panel forecasts the current account deficit to widen to 7.0% of GDP.