Turkey: Current account deficit narrows in August
The current account posted a USD 0.6 billion deficit in August, improving from the USD 5.5 billion deficit recorded in July (August 2022: USD 2.8 billion deficit). Meanwhile, the 12-month trailing current account deficit improved, coming in at USD 57.0 billion in August (July: USD 59.1 billion deficit).
The merchandise trade balance also improved from the previous month, recording a USD 7.1 billion deficit in August (July 2023: USD 10.6 billion deficit). Merchandise exports increased 0.7% over the same month last year in August, on the heels of July’s 6.0% rise. Meanwhile, merchandise imports fell 7.8% over the same month last year in August (July: +8.7% yoy).
Analysts at the EIU commented on the outlook: “Attracting sufficient capital inflows to cover the deficit and service foreign debt without drawdowns of foreign-exchange reserves will remain a risk, given uncertainties relating to monetary and foreign policy.”