Turkey: Current account deficit narrows in February on weak imports
April 11, 2014
The current account balance recorded a USD 3.2 billion deficit in February. The figure represents a sizeable improvement over the USD 5.1 billion deficit recorded in the same month last year, but slightly exceeded the USD 3.0 billion shortfall the market had expected. The 12-month trailing current account deficit narrowed from USD 64.1 billion in January to USD 62.2 billion February (equivalent to approximately 7.5% of GDP).
Exports expanded 6.2% in USD terms over the same month last year, which was below the 8.3% increase recorded in January. Imports contracted 6.0% in February, which contrasted the 2.4% increase recorded in January and marked the largest drop since April 2012. As a result of the sharp decline in imports, the trade deficit came in at USD 3.5 billion in February, which marked an improvement over the USD 5.5 billion shortfall recorded in the same month last year.
FocusEconomics Consensus Forecast panelists expect the current account deficit to reach 6.0% of GDP this year. For 2015, the panel sees the current account deficit remaining broadly stable at 5.9% of GDP.