Turkey: Current account narrows further in April
June 12, 2014
The current account balance recorded a USD 4.8 billion deficit in April (March: USD 3.3 billion deficit), which marked a notable improvement over the USD 8.1 billion shortfall recorded in the same month last year. The print was broadly in line with the USD 4.9 billion shortfall the market had expected. The 12-month trailing current account deficit narrowed from USD 60.1 billion in March to USD 56.8 billion in April (equivalent to approximately 7.5% of GDP).
Exports expanded 8.0% in USD terms over the same month last year, which was below the 13.0% increase recorded in March. Imports contracted 8.5% in April, which followed the 3.3% drop recorded in March and marked the sharpest drop since October 2009. As a result of the large decline in imports, the trade deficit came in at USD 5.4 billion in April, which marked an improvement over the USD 8.3 billion shortfall recorded in the same month last year.