Turkey: Current account surplus narrows in October
The current account recorded a USD 0.2 billion surplus in October, deteriorating from the USD 1.9 billion surplus booked in September (October 2022: USD 0.8 billion deficit). Meanwhile, in the 12 months leading up to October, the current account posted a USD 50.7 billion deficit, compared to the USD 51.7 billion deficit recorded in September.
The merchandise trade balance worsened from the previous month, recording a USD 4.9 billion shortfall in October (September 2023: USD 3.7 billion deficit). Merchandise exports climbed 6.7% over the same month last year in October (September: -2.9% year-on-year). October’s result marked the best print since May 2023. Meanwhile, merchandise imports declined 0.6% in annual terms in October (September: -16.4% yoy).
Analysts at the EIU commented on the outlook:
“In 2024 we expect the current-account deficit to narrow to about 3.6% of GDP as low growth and a weak lira continue to curb domestic demand for imports. Turkey will need to maintain tight economic policies to limit the current-account deficit and attract sufficient capital inflows to finance it.”