Turkey’s March current account deficit rises 47% y/y

By bne IntelliNews May 12, 2015

Turkey’s current account deficit rose by 47% y/y to $4.96bn in March, above the market consensus forecast of $4.3bn, data of the central bank showed on May 12.

Foreign trade deficit increased by 45% y/y to $4.86bn with exports falling 16% y/y and imports declining 5% y/y.

The central bank reported $900mn FDI inflows into the country, representing a 37% y/y decline, but the portfolio outflow was a significant $2.24bn in the month which followed an outflow of $479mn in February. Turkey’s equity market saw an outflow of $580mn in March after $503mn outflow in the previous month. There was an inflow of $444mn into the government debt securities in March after the central bank reported an outflows amounting to $1.25bn in the previous two months.

The central bank also reported inflow of $91mn through “the net error and omission” item which was significantly low compared to the $4.7bn of inflows in February. The inflows under this item in the first three months of the year amounted to $3.89bn vs $8.3bn a year ago.

Banks and other sectors borrowed $553mn and $107mn on net basis, respectively, in March through bond issuances in international markets, said the central bank.

Turkey’s current account deficit fell by 7.4% y/y to $10.9bn in January-March. The 12-month rolling current account deficit increased to $45.5bn in March from $43.9bn in February.

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.

Turkey's Balance of Payments (Q1)      
($ mn) 2014 2015 y/y
CURRENT ACCOUNT  (11,788)  (10,910) -7%
 Goods, Services and Primary Income  (11,975)  (11,110) -7%
 Goods and Services  (9,530)  (8,447) -11%
      foreign trade balance  (12,049)  (11,211) -7%
      exports  42,950  39,004 -9%
      imports  54,999  50,215 -9%
CAPITAL ACCOUNT  (21)  (2) -90%
FINANCIAL ACCOUNT  (3,525)  (7,022) 99%
       Net FDI  (3,082)  (2,385) -23%
       Net Portfolio Investment  2,475  1,540 -38%
NET ERRORS AND OMISSIONS  8,284  3,890 -53%
Source: tcmb      

Related Articles

Four Turkish companies reportedly consider IPOs in London or Istanbul

Turkey’s Enerjisa, Memorial Health Group, Tab Gida and Baskent Gaz are considering public offerings in London or Istanbul, unnamed sources told Bloomberg on July 19. Enerjisa, a 50:50 JV ... more

Turkey bars entry to thousands from more than 140 nations over suspected IS ties

Turkey has arrested and deported thousands of people suspected of having links to the Islamic State group according to a Turkish interior ministry report entitled “Turkey’s Fight ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Dismiss