Turkey’s June current account deficit declined by 19.5% y/y to $3.36bn, slightly higher than the market consensus forecast of $3bn, data of the central bank showed on August 11.

Foreign trade deficit was down by 23% y/y, declining to $4.8bn in the month. Imports fell by 12% y/y, but more worryingly exports exhibited a 7% y/y decline.

Net FDI inflows stood at $554mn in June, down from $861mn a year ago and $944mn in May 2015. Net FDI financed 17% of June’s current account deficit.

The central bank reported a net portfolio investment outflow of $661mn in June, after a $2.5bn of outflow in the previous months. Non-residents’ purchases of Turkish equities stood at a tiny $1mn, down from $74mn in May, while government domestic debt securities indicated a net sale of $452mn.

The bank also said there was outflow of $1.44bn under the “net error & omissions” item in June vs an inflow of $2bn in the previous month

Banks borrowed $119 million on net basis in June and $1.98bn in January-June through bond issues in international capital markets, said the central bank. The unexplained inflows amounted to $8.6bn in the first six months of the year, well above the $5.8bn of inflows registered a year ago.

Turkey’s current account deficit declined by 7% y/y to $22.7bn in H1 as foreign trade deficit narrowed by 15% y/y to $24.9bn. The 12-month rolling current account deficit declined to $44.7bn in June from $45.5bn in May. A recent Reuters poll of economists showed that the current account deficit is expected to be $35.8bn at the end of 2015.