Current account shortfall narrows to $548 million
The bank’s latest balance of payments figures revealed that Turkey’s current account gap in June fell by nearly 82 percent year-on-year, improving from around $3 billion deficit in the same month last year.
Turkey’s 12-month rolling surplus totaled $538 million, according to data from the Central Bank.
Treasury and Finance Minister Berat Albayrak welcomed the latest data, saying that the 12-month cumulative current account balance posted a surplus for the first time under the 17-year rule of the Justice and Development Party (AKP) government.
“Despite all the currency attacks, we have managed to carry forward the rebalancing process beyond our goals. We are out of the turbulence. We removed the bubble in import and increased exports,” Albayrak wrote on Twitter on Aug. 9.
“We aim to make the current account balance permanent by completing a transformation for an economy based on exports and value-added production. We will take all necessary steps to ensure a healthy and sustainable growth and bring our economy to desired levels,” he said.
Foreign trade improves
An Anadolu Agency survey on Aug. 7 showed that economists had forecast a deficit of $376 million for June.
“This development in the current account is mainly attributable to $1.82 billion decrease in the goods deficit recording net outflow of $2.60 billion, as well as $754 million increase in services surplus to $3.16 billion,” the Central Bank said.
Travel item under services recorded a net inflow of $2.52 billion in June, increasing $646 million on a yearly basis, the Central Bank said.
Investment income under primary income item indicated a net outflow of $1.06 billion increasing by $102 million compared to the same month last year, it added.