Turkey: Current account deficit widens in August
October 15, 2014
The current account balance recorded a USD 2.8 billion deficit in August (July: USD 2.7 billion deficit), which marked a deterioration over the USD 2.4 billion shortfall recorded in the same month last year. The print, however, was better than the USD 3.1 billion expected by market analysts. The 12-month trailing current account deficit widened slightly from USD 48.5 billion in July to USD 48.9 billion in August (equivalent to approximately 7.0% of GDP).
In August, exports expanded 4.5% in USD terms over the same month last year, which was above the 2.9% increase recorded in July. Imports rebounded strongly from a 13.5% drop in July to a 7.2% expansion in August, which marked the largest increase in eight months. As a result of the healthy import rise, the trade deficit came in at USD 6.5 billion in August, which marked a deterioration over the USD 5.7 billion shortfall recorded in the same month last year.