Turkey: External rebalancing continues
July 12, 2012
In May, the current account balance incurred a deficit of USD 5.8 billion. The figure exceeded the USD 5.0 billion deficit recorded in April but came in below market expectations of a USD 6.2 billion deficit. As a result of the monthly result, the 12-month trailing current account deficit narrowed for the seventh consecutive month, falling from USD 69.0 billion in April to USD 67.0 billion in April (approximately equivalent to 8.7% of GDP). Exports expanded 20.4% in USD terms over the same month last year, more than doubling the 8.0% increase recorded in April. Meanwhile, imports grew 2.4%, which contrasted the 7.4% contraction recorded in April. As a result, the trade deficit reached 7.1 billion in May, down from the USD 8.9 billion deficit recorded in the same month last year.