Turkey: Current account deficit continues to widen in May
July 11, 2013
In May, the current account balance incurred a deficit of USD 7.5 billion. The figure exceeded both the USD 5.3 billion deficit recorded in the same month last year and market expectations of a USD 6.9 billion shortfall. As a result of the monthly figure, the 12-month trailing current account deficit widened from USD 51.4 billion in April to USD 53.6 billion in May (approximately equivalent to 6.0% of GDP). According to some analysts, as in previous months, the negative performance registered in May was mainly driven by soaring gold imports.
Exports rose 2.4% in USD terms over the same month last year, which contrasted the 0.4% drop recorded in April. Meanwhile, imports increased 7.4% in May, which followed the strong 17.0% expansion observed in the previous month. As a result, the trade deficit reached USD 8.2 billion in May, which marks a deterioration over the USD 6.9 billion shortfall recorded in the same month last year.
FocusEconomics Consensus Forecast panellists expect the current account deficit to reach 6.8% of GDP this year. For 2014, the panel forecasts the current account deficit to widen to 7.1% of GDP.