Turkey: Current account deficit narrows sharply in 2012
February 12, 2013
In December, the current account balance incurred a deficit of USD 4.7 billion. The figure was better than the USD 6.6 billion deficit recorded in the same month the year before as well as market expectations of a USD 5.4 billion shortfall. As a result of the monthly figure, in the full year 2012 the current account deficit narrowed sharply to USD 48.9 billion (6.0% of GDP) from USD 77.2 billion in 2011 (10.0% of GDP).
Exports slowed to a 25-month low in December, rising only 4.4% in USD terms over the same month the previous year, which was well below the 27.5% increase recorded in November. Meanwhile, imports fell 3.8%, which contrasted the 12.7% rise observed in November. As a result, the trade deficit reached USD 5.4 billion in December, which marked an improvement over the USD 6.7 billion shortfall recorded in the same month the year before.