Turkey: Current account records lowest deficit in seven months in March
May 11, 2014
The current account balance recorded a USD 3.2 billion deficit in March (February: USD 3.3 billion deficit), which marked a notable improvement over the USD 5.7 billion shortfall recorded in the same month last year. The print, which came in broadly in line with the USD 3.3 billion shortfall the market had expected, represented the smallest deficit since August 2013. The 12-month trailing current account deficit narrowed from USD 62.4 billion in February to USD 60.0 billion March (equivalent to approximately 7.5% of GDP).
Exports expanded 13.3% in USD terms over the same month last year, which was well above the 6.6% increase recorded in February and marked the largest gain in 16 months. Imports contracted 3.3% in March, which followed the 6.1% drop recorded in February. As a result of the strong expansion in exports, the trade deficit came in at USD 3.3 billion in March, which marked an improvement over the USD 5.9 billion shortfall recorded in the same month last year.
FocusEconomics Consensus Forecast panelists expect the current account deficit to reach 6.0% of GDP this year. For 2015, the panel sees the current account deficit remaining broadly stable at 5.9% of GDP.