Current account deficit at $7.9 billion

ANKARA

Türkiye’s current account deficit rose from $5.4 billion in April to $7.93 billion in May, according to official data.

Excluding gold and energy, the current account indicated a net deficit of $1.2 billion, the Central Bank said on July 11.

Exports and imports stood at $21.3 billion and $31.8 billion, leading to a foreign trade deficit of $10.48 billion in May.

Tourism revenues in the month amounted to $3.05 billion.

“Direct investments recorded a net inflow of $89 million, while portfolio investment recorded a net outflow of $141 billion,” the bank said.

Non-residents’ transactions on equity securities and government domestic debt securities showed net sales of $630 million and $90 million, respectively.

Non-resident banks’ deposit accounts held within domestic banks decreased by $4 million, with an increase of $59 million in foreign currency and a decrease of 63 million in Turkish Lira accounts.

The current account deficit widened from $26.24 billion in January-May last year to $37.7 billion in the same period of 2023.

The annualized current account deficit stood at $59.96 billion in May, rising from $57.86 billion in the previous month.

“By taking steps to reduce the current account deficit, we will also lower the country's risk premium,” Treasury and Finance Minister Mehmet Şimşek wrote on Twitter on July 9.

The National Solidarity Package, which is currently under discussion in parliament, aims to alleviate the additional costs caused by the earthquake on the budget, while those regulations will also help bring the current account deficit under control, Şimşek also said.