Turkey: Current account deficit increases in May
The current account posted a USD 7.9 billion deficit in May, deteriorating from the USD 5.4 billion deficit posted in April (May 2022: USD 5.8 billion deficit). Meanwhile, in the 12 months leading up to May, the current account recorded a USD 60.0 billion deficit, compared to the USD 57.9 billion deficit posted in April.
The merchandise trade balance deteriorated from the previous month, recording a USD 10.5 billion shortfall in May (April 2023: USD 7.0 billion deficit). Merchandise exports jumped 12.5% over the same month last year in May (April: -18.4% year on year). May’s outturn marked the strongest outturn since July 2022. Meanwhile, merchandise imports shot up 14.5% over the same month last year in May (April: -5.8% yoy).
Muhammet Mercan, chief economist at ING, commented on the outlook:
“Overall, the data once again confirm a growing need for a rebalancing in the economy. Going forward, we will likely see an improvement in the current account as evidenced by the normalisation in energy prices and continuing strength in tourism, while a recovery in global demand should also be supportive of the foreign trade balance.”