Turkey: Current account deficit deteriorates sharply in December
February 13, 2014
The current account balance recorded a USD 8.3 billion deficit in December. The figure marks a sharp deterioration over the USD 4.9 billion deficit recorded in the same month of the previous year and the USD 7.4 billion shortfall the market had expected. In the full year 2013, the current account balance posted a deficit of USD 65.0 billion (equivalent to approximately 8.0% of GDP), which greatly exceeded the USD 48.5 billion shortfall tallied in 2012.
Exports expanded 4.2% in USD terms over the same month of the previous year, which was above the 2.6% increase recorded in November and marked the fastest acceleration in 10 months. Imports expanded a strong 16.7%, which was well above November's 2.2% increase. As a result of the robust expansion in shipments, the trade deficit reached USD 8.0 billion in December, which marked a deterioration over the USD 5.4 billion shortfall recorded in the same month of the previous year.
FocusEconomics Consensus Forecast panelists expect the current account deficit to reach 6.5% of GDP this year. For 2015, the panel forecasts the current account deficit remaining broadly stable at 6.4% of GDP.