Turkey: Current account improves further in May
July 11, 2014
The current account balance recorded a USD 3.4 billion deficit in May (April: USD 4.8 billion deficit), which marked a notable improvement over the USD 7.6 billion shortfall recorded in the same month last year. The deficit was less than the USD 4.0 billion deficit that market analysts had expected. The 12-month trailing current account deficit narrowed from USD 56.8 billion in April to USD 52.6 billion in May (equivalent to approximately 7.2% of GDP).
Exports expanded 3.8% in USD terms over the same month last year, which was below the 7.8% increase recorded in April and marked the weakest increase in six months. Imports contracted 9.9% in May, which followed the 8.5% drop recorded in April and represented the sharpest drop since October 2009. As a result of the large decline in imports, the trade deficit came in at USD 5.3 billion in May, which marked an improvement over the USD 8.0 billion shortfall recorded in the same month last year.