Current account swings to deficit in July

ANKARA

Türkiye’s current account swung back to deficit in July after posting a surplus of $651 million in June, data from the Central Bank have shown.

The current account deficit was $5.47 billion in July, said the bank on Sept. 11, adding that gold and energy excluded, the current account indicated a net surplus of $717 million.

Exports and imports stood at $19.7 billion and $30.2 billion respectively, with goods deficit recording $10.48 billion, which widened from a deficit of $3.76 billion in June.

Services recorded a net surplus of $6 billion in the month. Under services, travel item recorded a net inflow of $4.8 billion, said the bank.

Tourism revenues are contributing positively to the current account balance this year. Last week, Tourism Minister Mehmet Ersoy reiterated that the government’s target of $56 billion in tourism revenues set for 2023 will be met. Foreign tourist arrivals rose by 16 percent in January-July from a year ago to 26.77 million, according to the latest official data.

There was an inflow of $392 million under direct investments, while portfolio investments recorded a net inflow of $1.16 billion, the Central Bank said.

Non-residents’ transactions on equity securities and government domestic debt securities showed net purchases of $734 million and $18 million, respectively.

Non-resident banks’ deposit accounts held within domestic banks increased by $980 million, with an increase of $1.19 billion in foreign currency and a decrease of $206 million in Turkish Lira accounts.

In January-July, the current account deficit amounted to $42.3 billion, up from $32.2 billion a year earlier.

The 12-month cumulative deficit increased from $56.5 billion in June to $58.5 billion in July.