Turkey: Current account swings to deficit in November
The current account recorded a USD 2.7 billion deficit in November, deteriorating from a balanced current account in October (November 2022: USD 4.0 billion deficit). Meanwhile, in the 12 months leading up to November, the current account posted a USD 49.6 billion deficit, compared to the USD 50.9 billion deficit clocked in October.
The merchandise trade balance improved from the previous month, recording a USD 4.4 billion shortfall in November (October 2023: USD 4.9 billion deficit). Merchandise exports rose 3.4% annually in November (October: +6.4% year-on-year). Meanwhile, merchandise imports contracted 7.0% in annual terms in November (October: -0.6% yoy).
Analysts at the EIU commented on the outlook:
“Policy tightening will help to reduce the current-account deficit from an estimated 4.4% of GDP in 2023 to about 3% in 2024 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.”