Turkey: Current account deficit narrows in March
May 11, 2017
The current account balance recorded a USD 3.1 billion deficit in March, which was a smaller gap than March 2016’s USD 3.7 billion shortfall. March’s result was shy of market expectations of a USD 3.2 billion deficit and followed February’s USD 2.5 billion shortfall. The 12-month trailing current account deficit narrowed from USD 33.7 billion in February to USD 33.0 billion in March.
Improved dynamics in the current account were primarily driven by a rosier trade balance. Exports leaped 13.7% over the same month last year on the back of stronger EU demand and newfound competitiveness linked to the weakness of the lira, while imports grew a less pronounced 6.1%. The trade deficit, as a result, came in at USD 2.8 billion in March, which was a marked improvement over the USD 3.6 billion shortfall logged in March 2016.
Author: David Ampudia, Economist