Turkey: Current account deficit improves in April
June 10, 2016
The current account balance recorded a USD 3.0 billion deficit in April (March: USD 3.7 billion deficit). The deficit was lower than both the USD 3.9 billion shortfall recorded in the same month last year and the USD 3.2 deficit that market analysts had expected. As a result, the 12-month trailing current account gap narrowed from USD 29.5 billion in March to USD 28.6 billion in April (roughly equivalent to 5.0% of GDP), marking the smallest deficit in almost six years.
In April, exports contracted 10.0% in USD terms over the same month last year. The reading contrasted the 2.9% increase tallied in March. Imports fell 11.6%, which represented a much steeper drop than March’s 4.9% contraction. As a result, the trade deficit came in at USD 2.9 billion in April, which was a smaller shortfall compared to the USD 3.6 billion deficit recorded in the same month last year.
Author: Christopher Mc Innes, Economist