Turkey: Current account gap widens in April
June 12, 2017
The current account balance recorded a USD 3.6 billion deficit in April, which was a larger gap than April 2016’s USD 3.1 billion shortfall. The result was in line with market expectations and followed March’s revised USD 3.0 billion shortfall (previously reported: USD 3.1 billion deficit). The 12-month trailing current account deficit widened from USD 32.7 billion in March to USD 33.2 billion in April.
The larger deficit in April reflected a much larger import bill compared with the same month last year. Imports leaped 10.2% year-on-year in April, a contrast to the 11.7% decrease recorded in April 2016. Although exports were also on a much better footing this time around (April 2017: +8.2% yoy; April 2016: -10.4% yoy), the trade balance deteriorated from a USD 3.0 billion shortfall last year to a USD 3.5 billion deficit in April of this year.
Author: David Ampudia, Economist