Agencies
The current account balance of Turkey registered a larger-than-expected deficit in January to mark a third straight shortfall, official data showed on Wednesday.
The government still expects the balance to follow a sustainable course throughout the year, according to Treasury and Finance Minister Mehmet Şimşek.
The deficit for the month came in at nearly $3.8 billion (TL 139.06 billion), the Central Bank of the Republic of Turkey (CBRT) said, compared to market projections of around $3 billion.
The deficit widened to $4.6 billion in December. The bank’s data showed that the shortfall amounted to $2.3 billion in January 2024.
The current account is the most complete measure of trade because it includes not only goods and services but investment flows and other payments between Turkey and the world.
Elaborating on the data, Şimşek said the current account deficit is expected to remain at a sustainable level throughout the year.
Şimşek emphasized commitment to reducing external financing needs and improving the quality of financing through sustainable current account balance and long-term resources.
The goods recorded a deficit of nearly $5.6 billion in January while services registered a net surplus of almost $3.1 billion.
Excluding gold and energy, the current account netted a surplus of $2.4 billion.
The primary income item recorded a net outflow of nearly $1.2 billion, increasing by $294 million compared to the same month of the previous year. It was driven by net portfolio investment expenditures, which rose by $381 million to reach $675 million.
Net inflows from the services amounted to almost $3.1 billion, with net revenues from transportation services and travel items reaching $1.4 billion and $2.4 billion, respectively.
The CBRT data showed the 12-month rolling current account gap came in at $11.5 billion in January. The goods recorded a deficit of $57.6 billion.
Services and secondary income posted a surplus of $61.9 billion and $101 million, respectively, while the primary income recorded a net deficit of $16 billion.
The overall shortfall narrowed to almost $10 billion in 2024 from nearly $40 billion a year earlier, with interest rate hikes and gold trade restrictions having driven the decline.
The ratio of the current account deficit to national income fell below 1% in 2024, compared to 3.5% in 2023. The government’s medium-term program (MTP) forecast a current account deficit-to-GDP ratio of 1.7%.
