Turkey’s May current account deficit seen at $3.6bn

By bne IntelliNews July 7, 2015

The Turkish economy is expected to post a current account deficit of $3.6bn in May while the end-year deficit is seen at $36.5bn, according to a Reuters poll of economists.

The current account shortfall narrowed 31% y/y to $3.41bn in April, above the market consensus forecast of $3bn. The deficit fell by 13% y/y to $14.5bn in January-April, while the 12-month rolling current account deficit increased to $44.3bn in April from $45.8bn in March.

The deficit was $3.65bn in May 2014.

The government expects the current account deficit to be $46bn (or 5.4% of GDP) this year and $49.2bn (5.4% of GDP) next year.

Falling oil prices, if sustained, may have a positive effect on the country’s current account deficit. Turkey imports most of its energy needs. Turkey’s energy import bill was $17.3bn in January-May, a 24.3% decline from a year, according to the latest foreign trade data of the statistics office TUIK.

Turkey's Balance of Payments (January-April)
($ mn) 2014 2015 y/y
CURRENT ACCOUNT  (16,716)  (14,469) -13%
 Goods, Services and Primary Income  (16,999)  (14,744) -13%
 Goods and Services  (13,706)  (10,498) -23%
      foreign trade balance  (17,629)  (14,518) -18%
      exports  57,229  53,214 -7%
      imports  74,858  67,732 -10%
CAPITAL ACCOUNT  (21)  (2) -90%
FINANCIAL ACCOUNT  (10,445)  (7,495) -28%
 Net FDI  (3,776)  (2,621) -31%
      Net acquisition of financial assets  1,428  1,407 -1%
      Net incurrence of liabilities  5,204  4,028 -23%
 Net Portfolio Investment  (1,727)  832 -
      Net acquisition of financial assets  934  1,130 21%
      Net incurrence of liabilities  2,661  298 -89%
NET ERRORS AND OMISSIONS  6,292  6,976 11%
Source: tcmb

Related Articles

Turkey ups steel exports 28% in 2024 driven by EU shipments, US takes just small percentage

Turkey upped its steel exports by 27.6% y/y in 2024 to 13.4mn tonnes, according to the Turkish Steel Association (TCUD). Growth was driven by shipments to the European Union (5.9mn tonnes, up ... more

TPAO arm contracts Subsea7 for Sakarya gas field work offshore Turkey

Turkish Petroleum Offshore Technology Centre AS (TP-OTC) has contracted international offshore service provider Subsea7 to provide inspection, repair and maintenance (IRM) services at the Sakarya ... more

Turkish firm Bonysocks earmarks $50mn to build Egyptian factory

Turkish socks manufacturing company Bonysocks plans to invest $50mn to build a new factory in Egypt, Al Ahram reported on January 12 citing the Turkish Ambassador in Cairo, Salih Mutlu Şen.  ... ... more

Dismiss