Turkey’s current account deficit hits $47.1 billion in 2017
Data showed that the annual deficit reached $47.1 billion in 2017, from $32.6 billion in the previous year.
Energy, gold imports
İş Investment economist Muammer Kömürcüoğlu told state-run Anadolu Agency that the rise in the 12-month rolling deficit - nearly $14 billion - was mainly driven by energy and gold imports.
“This widening is related to energy and gold imports, which added $8.9 billion and $11.8 billion to the deficit respectively,” Kömürcüoğlu said.
Regarding the December 2017 data, the Bank said developments in the current account are mainly attributable to the $3.16 billion increase in the goods deficit, recording a net outflow of $7.42 billion, as well as a $231 million increase in primary income deficit to $1.18 billion.
Travel items under services recorded a net inflow of $780 million, increasing by $80 million compared to the same month of the previous year, according to the Bank data.
Investment income under the primary income item indicated a net outflow of $1.09 billion, thus increasing by $208 million compared to the same period of the previous year.
Secondary income recorded net inflow of $240 million, increasing by $17 million compared to the same month of the previous year.
Decline in direct investment
In December 2017, direct investment recorded a net inflow of $490 million, decreasing by nearly $1 billion compared to the same month of the previous year, the Central Bank data also showed.
Portfolio investment recorded a net inflow of $344 million.
Regarding sub-items through liabilities, non-residents’ equity securities transactions recorded net purchases of $142 million, while government domestic debt securities transactions recorded net sales of $266 million.
Regarding bond issues in international capital markets, banks realized net borrowing of $305 million.
“Other investment recorded a net outflow of $1.99 billion,” the Bank said.
Meanwhile, as a result of some revisions the net errors and omissions item was revised downwards by $897 million in 2012, $536 million in 2013, $921 million in 2014, $442 million in 2015, and $2.52 billion in January-November 2017, in contrast to the $44 million upward revision in 2016, bringing the cumulative downward revision to $5.3 billion for the entire period, according to Central Bank data.