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.