Turkey: Current account deficit narrows in June
August 15, 2013
The current account balance incurred a deficit of USD 4.5 billion in June - the lowest deficit in seven months. The figure marked an improvement over both the USD 7.3 billion deficit recorded in the same month last year and market expectations of a USD 5.1 billion shortfall. As a result of the monthly figure, the 12-month trailing current account deficit widened from USD 53.2 billion in May to USD 53.6 billion in June (equivalent to approximately 6.0% of GDP). Exports fell 4.8% in USD terms over the same month last year, which contrasted the 3.5% expansion recorded in May. Meanwhile, imports increased 2.7% in June, which followed May's strong 7.5% expansion. As a result, the trade deficit reached USD 6.9 billion in May, which marks a deterioration over the USD 5.7 billion shortfall recorded in the same month last year. FocusEconomics Consensus Forecast panellists expect the current account deficit to reach 6.8% of GDP this year. For 2014, the panel forecasts the current account deficit to widen to 7.1% of GDP.