Turkey’s current account posts surplus for first time in last 3 years

ANKARA

Turkey’s current account balance showed a surplus in August, for the first time over the past three years, the Turkish Central Bank (CBRT) announced on Oct. 11.

According to the CBRT’s balance of payments report, the country’s current account surplus amounted to $2.59 billion in August, improving from $923 million deficit in the same month last year.

In September 2015, when a current account surplus was last observed, Turkey’s current account balance recorded a surplus of $218 million.

Thus, the 12-month rolling deficit reduced to $51.1 billion. The gap was announced at $30.6 billion in the first eight months of the year.

The surplus in the current account is mainly attributable to $3.07 billion decrease in the goods deficit recording a net outflow of $1.28 billion, as well as a $741 million increase in net inflows in the services item realizing $4.63 billion, according to the Bank’s statement.

Travel item under services account recorded a net inflow of $3.7 billion in August, increasing by $461 million compared to the same month of the previous year, the Bank said.

Investment income item under primary income indicated a net outflow of $675 million increasing by $67 million in comparison to the same month the previous year, it added.

Direct investment recorded a net inflow $737 million in August decreasing by $60 million compared to the same month of the previous year, according to the statement.

A new table, namely “Table 7: Current Account, Non-Monetary Gold and Energy Trade” has been included in the data set of balance of payments statistics starting with the publication of August 2018, the Bank also said.

In this vein, while Turkey’s current account balance excluding gold and energy posted a $2.44 billion surplus last August, it gave a $5.11 billion surplus in August 2018.