Turkey: Current account deficit narrows in June
August 11, 2015
The current account balance recorded a USD 3.4 billion deficit in June (May: USD 4.4 billion deficit), which marked an improvement over the USD 4.2 billion shortfall recorded in the same month last year. However, the print marked a deterioration from market expectations of a USD 3.0 billion deficit. The 12-month trailing current account deficit also narrowed, from USD 45.5 billion in May to USD 44.7 billion in June (roughly equivalent to 5.5% of GDP).
In June, exports fell 6.7% in USD terms over the same month last year, which was a notable improvement from the 18.9% drop tallied in May. Imports fell 11.7%, which followed May’s 13.9% annual contraction. As a result, the trade deficit came in at USD 4.8 billion in June, which marked an improvement over the USD 6.3 billion shortfall recorded in the same month last year.