Turkey: Current account deficit narrows in May
July 14, 2016
The current account balance recorded a USD 2.9 billion deficit in May (April: USD 3.0 billion deficit). The deficit was lower than the USD 4.3 billion shortfall recorded in the same month last year but exceeded the USD 2.7 deficit that market analysts had expected. As a result, the 12-month trailing current account gap narrowed from USD 28.7 billion in April to USD 27.2 billion in May (roughly equivalent to 5.0% of GDP), marking the smallest deficit in almost six years.
In May, merchandise exports expanded 8.3% in USD terms over the same month last year. The reading contrasted the 10.2% decrease tallied in April and marked the fastest acceleration in over two years. Imports of goods fell 4.3%, which represented a softer drop than April’s 11.6% contraction. As a result, the trade deficit came in at USD 3.8 billion in May, which was a smaller shortfall compared to the USD 5.5 billion deficit recorded in the same month last year.