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 |
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