Current account deficit exceeds expectations in November

ISTANBUL - Doğan News Agency

Turkey’s current account deficit increased by 34 percent year on year to $5.64 billion in November 2014 following months of decline, according to data released by the Central Bank of Turkey Jan. 13.

Analysts and economists at banks and brokerage companies were expecting the November 2014 current account deficit to come in at between $5.2 billion and 5.4 billion. A rise in gold imports in the month played a role in the increased deficit as a result of declining gold prices, according to banking professionals.  

The current account deficit rose to the year’s highest level in November, while decreasing to $38.72 billion in the January-November 2014 period from $56.67 billion in the same period of the previous year. The annual deficit also stood at $47.09 billion at the end of the month.

The deficit shrank for the first 10 months of last year as a weak lira made Turkish goods more competitive, but exports fell in November for the first time in 2014, hurt by weak demand in key markets, including Russia and Iraq.