Current account posts $674 million surplus in June

ANKARA

Türkiye’s current account swung to a surplus in June for the first time since October 2021, helped by tourism revenues, data from the Central Bank showed on Aug. 11.

The country’s current account surplus was $674 million in June, larger than what most analysts had expected. In May, the current account balance produced a deficit of $7.84 billion.

The main driver was the net surplus of $5.02 billion in services, with travel items recording a net inflow of $4.2 billion in June.

Goods deficit was $3.7 billion, shrinking from the previous month’s $10.5 billion. Exports and imports stood at $20.4 billion and $24.05 billion, respectively.

Gold and energy excluded current account indicated a net surplus of $5.6 billion, the Central Bank said.

Direct investments recorded a net inflow of $135 million, rising from an inflow of $89 million in May. In the first half of 2023, direct investments amounted to $2.15 billion, down from $4.5 billion in the same period of 2022.

There was a net inflow of $1.8 billion under portfolio investments in June, which followed a net outflow of $1.4 billion in May.

“As regards to sub-items in liabilities, non-residents’ transactions on equity securities and government domestic debt securities recorded net purchases of $1.09 billion and $46 million, respectively,” the Central Bank said.

In the six months to June, portfolio investment recorded a net outflow of $1.15 billion, which was smaller than the outflow of $11.5 billion a year ago.

Non-resident banks’ deposit accounts held within domestic banks increased by $2.4 billion, with an increase of $1,65 billion in foreign currency and an increase of $757 million in Turkish Lira accounts.

The Central Bank data also showed that official reserves rose by $11.2 billion in June, after plunging $16.6 billion in the previous month.

There was an inflow of $5.5 billion under the net error and omissions item, which recorded an outflow of $7.5 billion in May.

In 2022, Türkiye’s current account deficit was $48.8 billion. A Central Bank survey last month showed that the current account deficit is expected to be $41.6 billion at the end of this year.