Turkey: Current account deficit worsens in July
September 12, 2013
The current account balance ran up a deficit of USD 5.8 billion in July. The figure marks a deterioration over both the USD 4.1 billion deficit recorded in the same month last year and market expectations of a USD 5.5 billion shortfall. As a result of the monthly figure, the 12-month trailing current account deficit widened from USD 54.0 billion in June to USD 55.8 billion in July (equivalent to approximately 6.5% of GDP).
Exports rebounded in July, expanding 2.4% in USD terms over the same month last year, which contrasted the 5.0% decline recorded in June. Imports also increased in July, expanding 10.1% and marking a sharp increase over June's 2.9% rise. As a result, the trade deficit reached USD 8.1 billion in July, which was a deterioration over the USD 6.4 billion shortfall recorded in the same month last year.
FocusEconomics Consensus Forecast panelists expect the current account deficit to reach 6.9% of GDP this year. For 2014, the panel forecasts the current account deficit to widen to 7.1% of GDP.