Turkey: Current account deficit narrows in March
May 13, 2013
In March, the current account balance incurred a deficit of USD 5.4 billion. The figure was better than both the USD 6.3 billion deficit recorded in the same month last year and market expectations of a USD 5.9 billion shortfall. As a result of the monthly figure, the 12-month trailing current account deficit narrowed, falling from USD 48.0 billion in February to USD 47.1 billion in March (approximately equivalent to 6.0% of GDP).
Exports expanded 1.8% in USD terms over the same month last year, which is below the 7.0% increase recorded in February and marks, in fact, the lowest reading seen since February 2010. Meanwhile, imports contracted 0.7%, which contrasts the 9.1% rise observed in February. As a result, the trade deficit reached USD 5.7 billion in March, which marks an improvement over the USD 6.1 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 7.0% of GDP.