Current account deficit shrinks to $619 million

ANKARA

Türkiye’s current account deficit declined from $5.5 billion in July to $619 million in August, data from the Central Bank have shown.

Gold and energy excluded, the current account posted a net surplus of $6.15 billion, the bank said on Oct. 11.

The goods deficit was $7.1 billion, with exports and imports standing at $21.2 billion and $28.3 billion in August. In July, this deficit was $10.57 billion.

Services posted a net surplus of $7.27 billion, with the travel item recording a net inflow of $5.75 billion. In the first eight months of 2023, inflows under the travel item amounted to $26.5 billion, rising from $24 billion in the same period of last year.

Net inflows under direct investments were $106 million in August, declining from $408 million of inflows in July. From January to August, direct investments stood at $2.63 billion, down from $5.45 billion in the first eight months of 2022.

“Portfolio investment recorded a net inflow of $880 million. Non-residents’ transactions on equity securities recorded net sales $131 million, government domestic debt securities recorded net purchases of $382 million,” the bank said. Net portfolio inflows were $929 million in January-August against the outflow of $11.36 billion in the same period of last year.

Non-resident banks’ deposit accounts held within domestic banks increased by $20 million, with an increase of $141 million in foreign currency and a decrease of $121 million in Turkish lira accounts, said the Central Bank.

Official reserves increased by $5.13 billion, the data also showed.

In the first eight months of 2023, the current account deficit stood at $43.13 billion, rising from the deficit of $35.06 billion a year earlier.