Current Account in Turkey
Turkey - Current Account
Current account records small deficit in January
The current account balance recorded a USD 0.8 billion deficit in January, smaller than December’s revised USD 1.5 billion deficit (previously reported: USD 1.4 billion deficit) and down markedly from the USD 7.0 billion deficit recorded in the same month a year prior. The current account position has strengthened markedly since the middle of last year due to tepid domestic demand and a weaker currency.
January’s deficit was underpinned by a trade deficit in goods, which more than offset a trade surplus in services thanks to a solid tourism sector. However, the goods deficit was down markedly year-on-year, as the weak labor market, pessimistic consumer sentiment and general limp economic activity hampered import demand.
On the financing front, there were USD 6.1 billion of net inflows in January, thanks largely due to external borrowing by banks and the government, and non-residents’ purchases in the stock market. This enabled the Central Bank to accumulate USD 3.5 billion in foreign reserves, and continue rebuilding external buffers which were depleted over the course of 2018.
Turkey is expected to record the smallest current account deficit in a decade this year due to suppressed domestic demand and the weak lira supporting exports. FocusEconomics Consensus Forecast panelists see the current account deficit at 2.0% of GDP in 2019 and 2.9% of GDP in 2020.
Turkey - Current Account Data
|Current Account (% of GDP)||-6.7||-4.7||-3.7||-3.8||-5.6|
5 years of economic forecasts for more than 30 economic indicators.
Turkey Current Account Chart
Source: Central Bank and FocusEconomics calculations.
|Bond Yield||14.95||-0.09 %||Mar 11|
|Exchange Rate||5.45||-0.85 %||Mar 11|
|Stock Market||100,850||1.41 %||Mar 11|
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Turkey: Industrial production contracts in January in annual terms, but sequential data paints a slightly more positive picture
March 14, 2019
Industrial output dropped 7.3% in January in calendar-adjusted year-on-year terms.
March 11, 2019
The current account balance recorded a USD 0.8 billion deficit in January, smaller than December’s revised USD 1.5 billion deficit (previously reported: USD 1.4 billion deficit) and down markedly from the USD 7.0 billion deficit recorded in the same month a year prior.
March 11, 2019
According to data released by Turkstat on 11 March, the Turkish economy shrank 3.0% in the fourth quarter of last year, with the aftereffects of the currency crisis cooling activity.
March 6, 2019
At its monetary policy meeting on 6 March, the Central Bank of the Republic of Turkey (CBRT) left the one-week repo rate unchanged at 24.00% for the fourth consecutive meeting. The Bank’s decision to keep rates at their current high level was motivated by a desire to support the lira and ensure that price pressures continue to ebb.
March 4, 2019
Consumer prices in Turkey rose 0.16% from the previous month in February, down from January’s 1.06% increase.