Turkey: Current account deficit narrows more than expected
October 11, 2012
In August, the current account balance incurred a deficit of USD 1.2 billion. The figure represents an improvement over both the USD 4.0 billion deficit recorded in the same month last year and market expectations of a USD 1.8 billion shortfall. As a result of the subdued monthly reading, the 12-month trailing current account deficit narrowed for the 10th consecutive month, falling from USD 61.9 billion in July to USD 59.0 billion in August (equivalent to 7.7% of GDP), the lowest level recorded since March 2011. Exports expanded 12.1% in USD terms over the same month last year, which was above the 9.2% increase recorded in July. In contrast, imports contracted 5.9%, which followed the 2.2% decline observed in July. As a result, the trade deficit reached USD 4.3 billion in August, down from the USD 6.9 billion deficit recorded in the same month last year.
Author: Armando Ciccarelli, Head of Data Solutions