Current account deficit widened to $6.5 bln in May

Current account deficit widened to $6.5 bln in May

Current account deficit widened to $6.5 bln in May

Türkiye’s current account deficit widened by $3.2 billion from a year ago to stand at $6.5 billion in May, the country’s Central Bank said on July 8.

The 12-month cumulative current account gap, thus, reached $29.44 billion.

“In this development, the rising of good’s deficit to $8.75 billion, increasing by $5.7 million, was effective despite the fact that the inflows from the services item rose to $3.2 billion, up by $2.3 billion and outflows from the primary income fell down to $913 million,” the Central Bank said in a statement.

Exports stood at $19 billion, while imports were around $27.8 billion in May, data showed.

“Gold and energy excluded, current account indicated a surplus of $388 million against the deficit of $1 billion deficit in the same month of the previous year,” the bank noted.

Under services, travel items recorded a net inflow of $2.1 billion, increasing by $1.55 billion compared to the same month of the previous year.

Direct investment recorded a net inflow of $959 million in the month while the net outflow from portfolio investments was $4.3 billion. Non-residents’ transactions on equity securities and government domestic debt securities recorded net sales of $1.66 billion and $495 million, respectively.

Turkish banks’ currency and deposits within their foreign correspondent bank accounts increased by $1.3 billion.

Non-resident banks’ deposit accounts held within domestic banks increased by $1.1 billion, with an increase of $1.06 billion in foreign currency and an increase of $82 million in Turkish Lira accounts.

Regarding the loans provided from abroad, banks, the general government and other sectors realized net repayments of $172 million, $154 million and $94 million, respectively, the bank said.

Official reserves recorded a net outflow of $5.94 billion, according to data.