Tourism, trade fall blamed for deficit hike in Turkey

ANKARA - Anadolu Agency

REUTERS photo

Turkey’s current account deficit has widened and is standing at $1.68 billion in October, up by almost $1.33 billion year-on-year, the Central Bank stated on Dec. 12. 

The Bank cited a fall in income from tourism and foreign trade for the decline.         

According to the Bank’s data, the 12-month rolling deficit rose to $33.7 billion, up from $32.4 billion in September 2016.        

The fall in the services surplus due to slipping tourism revenue and a growing foreign trade deficit of $333 million from a year earlier was the main reason for the increase, the Bank stated.        

The development in the current account was mainly attributable to the increase in the deficit in goods items by $333 million to $2.8 billion, as well as a $916 million decrease in the services surplus to $1.793 billion and a $137 million increase in the primary income deficit to $771 million, the Central Bank added.
 
Travel items under services recorded a net inflow of $1.69 billion, decreasing by $630 million compared to the same month of the previous year, it said.        

Revenue from tourism fell by 32.7 percent to $8.28 billion in the third quarter of the year, official figures had shown on Oct. 31.        

Turkey’s total revenue from tourism was over $17.3 billion from January to September, $7.6 billion less compared to the same period last year, according to the figures.