Turkey: Current account deficit increases in February
The current account posted a USD 3.3 billion deficit in February, deteriorating from the USD 2.5 billion deficit posted in January (February 2023: USD 9.0 billion deficit). Meanwhile, the 12-month trailing current account deficit improved, coming in at USD 31.8 billion in February (January: USD 37.6 billion deficit).
The merchandise trade balance worsened from the previous month, recording a USD 4.8 billion shortfall in February (January 2024: USD 4.4 billion deficit). Merchandise exports jumped 13.0% annually in February (January: +2.7% year-on-year). February’s result marked the fastest growth since June 2022. Meanwhile, merchandise imports plunged 11.7% in annual terms in February (January: -24.2% yoy).
Analysts at the EIU commented on the outlook:
“Policy tightening will help to reduce the current-account deficit from 4.1% of GDP in 2023 to 3% in 2024, partly as a result of lower domestic demand. Easing global commodity prices should also curb the rise in import costs. Meanwhile, a still-strong tourism sector and a recovery in external demand will support trade and services exports.”