Turkey: Current account deficit improves in March
May 10, 2016
The current account balance recorded a USD 3.7 billion deficit in March (February: USD 2.0 billion deficit). The print was better than both the USD 4.8 billion shortfall recorded in the same month of the previous year and the USD 3.9 deficit that market analysts had expected. As a result, the 12-month trailing current account gap narrowed from USD 30.6 billion in February to USD 29.5 billion in March (roughly equivalent to 5.0% of GDP), marking the smallest deficit in over five-and-a-half years.
In March, exports rose 3.2% in USD terms over the same month last year. The reading followed the 2.0% increase tallied in February and represented the fastest acceleration since October 2014. Imports fell 4.9%, which represented a smaller drop than February’s 7.9% contraction. As a result, the trade deficit came in at USD 3.6 billion in March, which was a smaller shortfall comparted to the USD 4.9 billion deficit recorded in the same month last year.