Turkey: Current account narrows in June
August 14, 2014
The current account balance recorded a USD 4.1 billion deficit in June (May: USD 3.5 billion deficit), which marked an improvement over the USD 4.8 billion shortfall recorded in the same month last year. The deficit, however, exceeded the USD 3.7 billion shortfall that market analysts had expected. The 12-month trailing current account deficit narrowed further from USD 52.9 billion in May to USD 52.2 billion in June (equivalent to approximately 7.0% of GDP).
Exports expanded 4.6% in USD terms over the same month last year, which was above the 2.6% increase recorded in May. Imports contracted 0.9% in June, which represented a notable improvement over the 9.9% drop recorded in May and marked the softest decline in five months. As a result of the contraction in imports, the trade deficit came in at USD 6.2 billion in June, which marked an improvement over the USD 7.0 billion shortfall recorded in the same month last year.