Turkey: Current account deficit deteriorates in October
December 11, 2013
The current account balance ran up a USD 2.9 billion deficit in October. The figure marks a deterioration over the USD 1.2 billion deficit recorded in the same month last year, but was an improvement over the USD 3.0 billion shortfall the market had expected. As a result of the deterioration in October, the 12-month trailing current account deficit widened from USD 59.1 billion in September to USD 60.9 billion October (equivalent to approximately 7.0% of GDP).
Exports contracted 7.8% in USD terms over the same month last year, contrasting the 0.9% increase recorded in September. Imports expanded 3.5%, which was broadly in line with September's 3.8% increase. As a result, the trade deficit reached USD 5.6 billion in October, which marked a deterioration over the USD 3.8 billion shortfall recorded in the same month last year.
FocusEconomics Consensus Forecast panelists expect the current account deficit to reach 7.1% of GDP this year. For 2014, the panel forecasts the current account deficit remaining broadly stable at 6.8% of GDP.