Turkey: Current account records smallest deficit since October 2009
October 15, 2015
The current account balance recorded a USD 160 million deficit in August (July: USD 3.2 billion deficit), which marked a notable improvement over the USD 2.2 billion shortfall recorded in the same month last year. Moreover, August’s figure marked the smallest current account deficit since October 2009 as low oil prices, a weak lira and subdued import demand all eased pressures on the country’s current account deficit. However, the print still marked a wider deficit than market expectations of a 50 million shortfall. As a result, the 12-month trailing current account deficit also narrowed, from USD 45.1 billion in July to USD 43.0 billion in August (roughly equivalent to 5.4% of GDP).
In August, exports fell 5.8% in USD terms over the same month last year, which was a more moderate decline from the 16.7% drop tallied in July. Imports fell a significant 17.7%, which followed July’s 7.3% annual contraction and marked the sharpest decline since September 2009. As a result, the trade deficit came in at USD 3.6 billion in August, which marked a smaller shortfall over the USD 6.2 billion deficit recorded in the same month last year.