Turkey: Current account deficit widens in July
September 10, 2015
The current account balance recorded a USD 3.2 billion deficit in July (June: USD 3.3 billion deficit), which marked a deterioration over the USD 2.4 billion shortfall recorded in the same month last year. However, the print marked an improvement from market expectations of a USD 3.5 billion deficit. The 12-month trailing current account deficit also widened, from USD 44.3 billion in June to USD 45.0 billion in July (roughly equivalent to 5.6% of GDP).
In July, exports plummeted 16.5% in USD terms over the same month last year, which was a notable deterioration from the 6.9% drop tallied in June. Imports fell 7.3%, which was a more moderate drop from June’s 11.7% annual contraction. As a result, the trade deficit came in at USD 5.8 billion in July, which marked a larger deficit over the USD 4.8 billion shortfall recorded in the same month last year.