The statistics institute TUIK will release the current account (CA) deficit for March on Tuesday (May 13). The markets are expecting a CA deficit of USD 3.2bn, according to a CNBC-e poll of economists.
Turkey’s CA shortfall narrowed 37.3% y/y to USD 3.19bn in February (market consensus forecast: USD 3.05bn) as foreign trade deficit shrank 36% y/y in the month. The CA deficit fell by 25.5% y/y to USD 8.1bn in January-February, with foreign trade deficit declining 22% y/y to USD 8.82bn. The foreign trade deficit narrowed 30.1% y/y to USD 5.2bn in March as imports fell 3% y/y, in a sign that the improvement in the CA has probably continued into March.
The Central Bank says that the current account deficit will improve substantially in 2014. Last week, The Central Bank cut the daily foreign exchange selling auction amount from minimum USD 40mn to minimum USD 20mn starting on May 9, citing the favourable developments in the balance of payments.
| Jan-Feb | |||
| (USD bn) | 2012 | 2013 | y/y |
| CURRENT ACCOUNT | -10,9 | -8,1 | -25% |
| exports | 25,6 | 27,4 | 7% |
| imports | 37,0 | 36,3 | -2% |
| CAPITAL ACCOUNT | -0,015 | -0,018 | 20% |
| FINANCIAL ACCOUNT | 17,9 | -0,5 | - |
| Direct Investment in Turkey | 1,9 | 2,4 | 28% |
| Portfolio Investment | 4,4 | -1,7 | -138% |
| NET ERRORS AND OMISSIONS | -2,0 | 4,5 | - |
| Source: tcmb | |||
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