Current account posts $2.9 billion deficit in November

ANKARA

Türkiye’s current account recorded a net deficit of $2.87 billion in November 2024, according to data from the Central Bank on Jan. 13.

The deficit in November, the first since May 2024, was slightly below the market expectation for a current account gap of $2.96 billion.

The current account balance constantly produced surpluses between June and October 2024.

“The decline of the current account deficit to sustainable levels has been one of the most important achievements of our program,” Finance Minister Mehmet Şimşek wrote on X, commenting on the latest data.

“We expect the current account deficit to be below 1 percent of national income, much more positive than our 2024 target,” he added.

Access to external financing has increased under more favorable conditions, the minister said.

Şimşek cautioned that weak demand in the European Union, rising oil prices and the strengthening U.S. dollar may negatively affect the current balance in the coming period.

“We continue to implement our program with determination to maintain a sustainable current balance and further improve the quality of financing,” he reiterated

Excluding gold and energy, the current account indicated a net surplus of $3.44 billion in November, the Central Bank said.

The goods deficit recorded $5.24 billion in the month, expanding from the deficit of $3.6 billion in October.

The annualized current account deficit increased from $7.13 billion in October to $7.37 billion in November.

“As regards the annualized figures, the current account deficit was mainly financed through direct investments with a net inflow of $4.2 billion, portfolio investments with a net inflow of $14.1 billion and loans with a net inflow of $24.6 billion in November 2024,” the bank said.

In January-November 2024, the current account balance posted a deficit of $5.6 billion, shrinking from a deficit of $38.7 billion in the same period of the previous year.