NEWS ECONOMY NEWS        11/12/2020

Turkey’s current account deficit is USD 31.1 billion for first 10 months of 2020

The Turkish Central Bank recorded a USD 273 million current account deficit in October 2020, a decrease of USD 3,010 million on the surplus of USD 2,737 million for the same month of the previous year.

 

The Central Bank showed exports as USD 17,219 million and imports at USD 18,486 million in October 2020, giving a trade deficit of USD 1,267 million, an increase of USD 323 million (34.2%) on the trade deficit of USD 944 million of the same month of the previous year.

 

For the first ten months of 2020, the current account deficit is USD 31,055 million, compared with a surplus of USD 9,649 million for the same period of the previous year. 

 

With regards items of the current account, the Central Bank’s analysis was as follows :

“The current account posted USD 273 million deficit compared to USD 2,737 million surplus observed in the same month of 2019, bringing the 12-month rolling deficit to USD 33,795 million. This development is mainly driven by the net outflow of USD 1,267 million in the goods item increasing by USD 514 million, as well as the net inflow of USD 1,576 million in services item decreasing by USD 2,891 million compared to the same month of the previous year. Gold and energy excluded current account indicated USD 2,929 million surplus, in comparison to USD 6,533 million surplus observed in the same month of the previous year. Travel item under services recorded a net inflow of USD 1,335 million, decreasing by USD 1,931 million compared to the same month of the previous year. Primary income recorded net outflow of USD 613 million decreasing by USD 488 million compared to the same month of the previous year. Secondary income recorded net inflow of USD 31 million decreasing by USD 93 million compared to the same month of the previous year.”

 

With regards the related Financial Account, the Central Bank’s analysis was as follows :

“Direct investment recorded a net inflow of USD 27 million. Portfolio investment recorded a net inflow of USD 2,895 million. As regards to sub-items through liabilities, non-residents’ equity securities and government domestic debt securities transactions recorded net sales of USD 146 million and USD 270 million, respectively. Regarding the bond issues in international capital markets, General Government realized net disbursement of USD 2,500 million, as well as banks and other sectors realized net borrowing of USD 50 million and USD 650 million, respectively. Under other investment, banks’ currency and deposits within their foreign correspondent banks decreased by USD 3,121 million, while non-resident banks’ deposits held within domestic banks increased by USD 432 million, on net basis. Regarding the loans provided from abroad, other sectors realized net borrowing of USD 534 million, while banks and General Government realized net repayments of USD 1,995 million and USD 52 million, respectively. Official reserves recorded net inflow of USD 4,183 million.”

 

The current account surplus for 2019 was USD 6,909 million, which is a 132% improvement on the deficit of USD 21,623 million for 2018.

 



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