Turkish Central Bank sees end-year CA deficit below 7.1% of GDP.

By bne IntelliNews September 4, 2013

Current account deficit to GDP ratio at the end of the year is expected to be lower than the government’s forecast of 7.1% (or USD 60.7bn), initially envisaged in the medium term programme, the Central Bank said on Wednesday in a presentation to economists published on its website.

Turkey’s current account deficit widened 12.4% y/y to USD 4.45bn in June. The CA shortfall was USD 35.92bn in January-June, up from USD 30.03bn in the same period of 2012.

Domestic demand and exports grow at a moderate pace and exchange rate movements will have a temporary impact on inflation, the Bank said in the presentation. FX liquidity will also be provided from the gross reserves via ROM and FX required reserves if needed.

Central Bank’s governor Erdem Basci said last month that he was not worried about the country’s exchange rate. The depreciation of TRY is temporary and the Bank will not use interest rates as a tool to defend TRY as it has USD 40bn in reserves it can use to support the local currency, according to Basci.

The Bank did not make any prediction in the presentation about GDP growth this year.

GDP growth may be above 3% this year, Deputy PM Ali Babacan said on Tuesday, implying that this year’s growth will fall short of the government’s initial forecast of4%.

The government will announce its medium-term programme, which will include possible revisions to macro-economic forecasts, by mid-October, Babacan also said on Tuesday.

Related Articles

Turkey postpones plan to sell firms seized after coup attempt

Turkey has put on hold its plan to sell almost 600 companies worth about $10bn seized in the aftermath of the failed military coup, people familiar with the matter told Bloomberg on March 23. The ... more

Turkey to maintain EU economic relations but review political ties, says Erdogan

Turkey will maintain its commercial ties with the European Union but will review its political and administrative ties with the bloc after the April 16 referendum, Turkish President Recep Tayyip ... more

Turkey easily tops table for Twitter content removal requests

Turkey accounted for more than half of all content removal requests received worldwide by Twitter during the second half of 2016, according to the social media company’s ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss