Turkey: Current account deficit dips to nine-month low in July
September 12, 2011
In July, the current account balance incurred a deficit of USD 5.3 billion, the smallest deficit in nine months. The result was down from the revised USD 7.7 billion deficit recorded in June but broadly in line with market expectations. Despite the moderation in monthly figures, the current account deficit over the last 12 months continued to widen, reaching USD 74.7 billion in July (approximately 9.4% of GDP). Imports remain buoyant despite the efforts of Turkish authorities to rebalance the economic expansion towards domestic sources. Imports rose 29.9% over July 2010 in USD terms (June: +41.7% year-on-year) while exports expanded 24.2% over the same period the previous year (June: +19.0% yoy). As a result, the trade deficit widened to a record USD 99.5 billion in the 12-month period to July 2011.