Turkey’s April current account deficit declines 31% y/y

By bne IntelliNews June 11, 2015

Turkey’s current account deficit declined by 31% y/y to $3.41bn in April, above the market consensus forecast of $3bn, data of the central bank showed on June 11.

Foreign trade deficit increased by 40% y/y to $3.33bn with exports falling 0.2% y/y and imports declining 11% y/y.

The central bank reported $570mn FDI inflows into the country, representing a 40% y/y decline, while the portfolio inflow also declined by 75% y/y to $1.15bn in the month which followed an outflow of $2.24bn in March and an outflow of $437mn in February. Inflows into Turkey’s equity market increased by 13% y/y to $652mn in April after $580mn outflow in the previous month and an outflow of $503mn in February. There was an outflow of $1bn from the government debt securities in April after the central bank reported an inflow of $444mn in the previous month.

The central bank also reported inflow of $2.89bn through “the net error and omission” item which was significantly high compared to the $258mn of inflows in March. The inflows under this item in the first four months of the year amounted to $6.98bn vs $6.29bn a year ago.

There was a net outflow of $29mn under banks borrowing item through bond issuances in international markets while other sectors borrowed $46mn through bond issuances in international markets on net basis, said the central bank.

Turkey’s current account deficit fell by 13% y/y to $14.5bn in January-April. The 12-month rolling current account deficit increased to $44.3bn in April from $45.8bn in March.

The government forecasts the current account deficit to be $46bn (or 5.4% of GDP) this year and $49.2bn (5.4% of GDP) next year. The OECD expects Turkey’s current account deficit to decline to 5.8% of GDP this year from 7.9% in 2014 while it projects the current account deficit to amount to 4.9% of GDP next year. According to the Central Bank’s May expectations survey, the country’s current account deficit is expected to be $38.3bn at the end of 2015 whereas the previous estimate in April was $37.9bn.

Turkey's Balance of Payments (January-April)

($ mn)








 Goods, Services and Primary Income




 Goods and Services




      foreign trade balance




















 Net FDI




      Net acquisition of financial assets




      Net incurrence of liabilities




 Net Portfolio Investment




      Net acquisition of financial assets




      Net incurrence of liabilities








Source: tcmb

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