Turkey: Current account gap continues to narrow in February
April 11, 2016
The current account balance recorded a USD 1.8 billion deficit in February (January: USD 2.3 billion deficit). The print was better than both the USD 3.3 billion shortfall recorded in the same month of the previous year and the USD 2.2 deficit that market analysts had expected. As a result, the 12-month trailing current account gap narrowed from USD 32.0 billion in January to USD 30.5 billion in February (roughly equivalent to 5.0% of GDP), marking the smallest deficit in five-and-a-half years.
In February, exports rose 1.6% in USD terms over the same month last year. The reading contrasted the 23.2% decrease tallied in January and represented the fastest acceleration since October 2014. Imports fell 7.9%, which represented a smaller drop than January’s 20.4% contraction. As a result, the trade deficit came in at USD 2.0 billion in February, which was a smaller shortfall comparted to the USD 3.4 billion deficit recorded in the same month last year.