Turkey’s current account gap widens in May

Turkey’s current account gap widens in May

ANKARA
Turkey’s current account gap widens in May

Turkey’s current account gap widened higher than expectations in May from a year ago, data from the Central Bank of the Republic of Turkey has shown.

According to the data released on July 11, the current account deficit rose to $5.9 billion in May from $5.4 billion in the corresponding month last year, with a nearly 9.6 percent year-on-year increase.

The expectations were at $5.3 billion for this month.

“This development in the current account was mainly attributable to $678 million increase in the goods deficit recording net outflow of $6.5 billion and $214 million rise in primary income deficit to $1.2 billion,” the Bank said.

Service items recorded a net inflow of $1.9 billion, increasing by $768 million compared to the same month of the previous year, mainly stemming from a $549 million net increase in travel revenues, which were observed as $1.7 billion in May 2018, it added.

The country’s 12-month rolling deficit reached $57.6 billion in May, the data also showed.

In the first five months of the year, the gap stood at $27.7 billion.

Turkey’s annual current account deficit in 2017 was around $47.3 billion, compared to the previous year’s figure of $33.1 billion.

According to official figures, the country’s highest annual current account deficit in the last 20 years was in 2011 with $74.4 billion.

current account deficit, Turkish economy, goods gap