Turkey’s current account gap falls to $2.2 billion amid oil plunge

ANKARA - Anadolu Agency

Cihan Photo

Turkey’s current account deficit fell to $2.22 billion in January, a drop of $216 million compared to the same month last year, the Central Bank stated on March 10.

The 12-month rolling deficit fell to $31.9 billion in the month from $42.9 billion in January of last year.  
     
“This development in the current account is mainly attributable to a $250 million decrease in the deficit in the goods item, at $2.84 billion, and a $25 million decrease in the primary income deficit, at $434 million,” the Bank said.        

Declining oil prices have had a very positive effect on Turkey’s current account deficit and inflation rate. 

Oil prices have fallen by 65 percent since mid-2014, from $115 a barrel in June 2014 to below $30 per barrel in 2016 (now $40 per barrel) reaching their lowest level in seven years. This marked the most rapid decline in oil prices since 2008.        

Turkey’s energy imports declined by 31 percent in 2015 compared to previous year, according to statistical authority (TURKSTAT). Energy imports stood at $37.8 billion last year, marking a drop of around $17 billion compared to 2014. 

Overall, Turkey paid $207 billion for its imports last year.        

Meanwhile, Turkey’s foreign trade deficit declined 13.4 percent year-on-year in January, in line with the oil plunge. In January, the deficit fell to $3.76 billion, down from $4.34 billion from same month last year, a decrease of 13.4 percent, according to data released by TURKSTAT on Feb. 29.        

Exports amounted to $9.6 billion, a 22 percent decrease from January 2015, and imports were $13.4 billion, a 19.7 percent decline year-on-year.