Turkey: Current account deficit increases in November
The current account posted a USD 3.7 billion deficit in November, deteriorating from the USD 0.4 billion deficit recorded in October (November 2021: USD 2.1 billion deficit). Meanwhile, the 12-month trailing current account deficit came in at USD 45.0 billion in November (October: USD 43.4 billion deficit).
The merchandise trade balance deteriorated from the previous month, recording a USD 7.1 billion deficit in November (October 2022: USD 6.5 billion deficit). Merchandise exports increased 0.5% over the same month last year in November (October: +1.7% year-on-year). The outturn marked the softest increase since January 2021. Meanwhile, merchandise imports soared 14.2% over the same month last year in November (October: +32.6% yoy), marking the weakest result since October 2021.
Pressures on the current account balance will persist this year. A weaker lira will take a toll on the import bill, while uncertainties in foreign and monetary policy will deter capital inflows. The prospect of a sharp global economic slowdown clouds the outlook.