Turkey: Current account deficit widens sharply in April
June 11, 2013
In April, the current account balance incurred a deficit of USD 8.2 billion. The figure was worse than both the USD 4.6 billion deficit recorded in the same month last year and market expectations of a USD 8.1 billion shortfall. As a result of the monthly figure, the 12-month trailing current account deficit widened from USD 47.7 billion in March to USD 51.3 billion in April (approximately equivalent to 6.0% of GDP). According to some analysts, the disappointing performance seen in April was mainly due to a jump in gold imports.
Exports contracted 0.1% in USD terms over the same month last year, which contrasted the 1.7% rise recorded in March. The print marks the first decline in exports since February 2010. Meanwhile, imports jumped 17.0% in April, which contrasted the 0.5% drop observed in the previous month. As a result, the trade deficit reached USD 8.4 billion in April, which marks a deterioration over the USD 5.2 billion shortfall recorded in the same month last year.
FocusEconomics Consensus Forecast panellists expect the current account deficit to reach 6.8% of GDP this year. For 2014, the panel forecasts the current account deficit to widen to 7.0% of GDP.