Turkey: Current account deficit shrinks further
September 11, 2012
In July, the current account balance incurred a deficit of USD 3.9 billion. The figure undershot the USD 5.4 billion deficit recorded in the same month last year but was virtually in line with market expectations of a USD 4.0 billion deficit. As a result of the relatively subdued monthly reading, the 12-month trailing current account deficit narrowed for the ninth consecutive month, falling from USD 63.0 billion in June to USD 61.4 billion in July (approximately 7.9% of GDP), the lowest level recorded since March 2011. Exports expanded 9.3% in USD terms over the same month last year, well below the 18.9% increase recorded in June. In contrast, imports contracted 2.1%, which followed the 5.8% decline observed in June. As a result, the trade deficit reached USD 6.4 billion in July, down from the USD 8.0 billion deficit recorded in the same month last year.