Turkey: Current account narrows sharply in July
September 11, 2014
The current account balance recorded a USD 2.6 billion deficit in July (June: USD 4.1 billion deficit), which marked an improvement over the USD 6.3 billion shortfall recorded in the same month last year. The print was above the USD 2.8 billion expected by market analysts and represented the lowest deficit since August 2013. The 12-month trailing current account deficit narrowed further from USD 52.1 billion in June to USD 48.5 billion in July (equivalent to approximately 7.0% of GDP).
In July, exports expanded 3.1% in USD terms over the same month last year, which was below the 4.5% increase recorded in June. Imports contracted a sharp 13.5% in July, which represented a deterioration over the 0.9% drop recorded in June and marked the steepest decline since October 2009. As a result of the strong contraction in imports, the trade deficit came in at USD 4.9 billion in July, which marked an improvement over the USD 8.4 billion shortfall recorded in the same month last year.