Current account balance shows 11-month low in July
Turkey’s current account balance posted a deficit of $ 683 million, down $ 1.3 billion from the same month last year, Turkey’s Central Bank announced on September 13.
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With the figures for July, the current account deficit reached its lowest in eleven months.
According to balance of payments figures released by the bank, the country’s 12-month rolling deficit stood at nearly $ 27.8 billion.
According to projections by a group of 17 economists who joined an Anadolu Agency survey last week, the July current account deficit is expected to reach $ 540 million.
The survey also predicted that the current account balance at the end of 2021 will have a deficit of $ 21.3 billion.
In June, the current account posted a deficit of $ 1.1 billion.
The bank said the decline was mainly due to a net inflow of nearly $ 2.95 billion in services, up $ 2.65 billion from July of the previous year.
The goods line posted a deficit of $ 2.98 billion, up $ 1.02 billion from the same month a year earlier.
The current account excluding gold and energy showed a surplus of $ 2.75 billion, which had been recorded as a surplus of $ 1.92 billion in the same month of the previous year, the bank noted.
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Travel items under services recorded a net inflow of $ 2.1 billion in July.
The bank also said direct investment saw a net inflow of $ 1.03 billion during the month.
According to the country’s medium-term economic program, Turkey’s current account deficit-to-GDP ratio is expected to be 2.2% next year, narrowing further to 1.5% in 2023 and 1% in 2024.
The government aims for GDP to exceed $ 850 billion in 2022, before reaching $ 975 billion in 2023 and exceeding $ 1,000 billion in 2024.