Turkey: Current account gap narrows at the outset of the year
March 10, 2016
The current account balance recorded a USD 2.2 billion deficit in January (December: USD 5.1 billion deficit). The print was better than both the USD 2.4 billion shortfall recorded in the same month of the previous year and the USD 2.4 deficit that market analysts had expected. As a result, the 12-month trailing current account gap narrowed from USD 32.1 billion in December to USD 31.9 billion in January (roughly equivalent to 5.0% of GDP), marking the smallest deficit in 65 months.
In January, exports fell 22.2% in USD terms over the same month last year. The reading followed the 12.5% decrease tallied in December and represented the steepest decline since September 2009. Imports fell a sizeable 19.4%, which represented a larger drop than December’s 17.1% contraction. As a result, the trade deficit came in at USD 2.9 billion in January, which was a smaller shortfall comparted to the USD 3.1 billion deficit recorded in the same month last year.