Current deficit declines $383 million in first quarter

ISTANBUL - Hürriyet Daily News

Turkey’s current account deficit reached $5.4 billion in March, the Central Bank says. REUTERS photo

Turkey’s current account deficit recorded $5.4 billion in March, up from February’s $4.9 billion, and $15.9 billion in the first quarter, indicating a $383 million decrease over the same period of the previous year.

This development appears to be mainly attributable to a $264 million increase in foreign trade deficit, recording $17.05 billion, and a $823 million increase in net services income, mainly in tourism incomes, the Turkish Central Bank announced yesterday.

The cumulative current account deficit decreased to $47.1 billion in March from $48 billion. Analysts said that this happened because the Turkish economy has been growing slower than the expectations.


Turkish Economy Minister Zafer Çağlayan said some partial increases could be expected in the current account deficit in the coming months with the expected rises in the domestic demand, which is quite normal, making the 2013 deficit a bit higher than the 2012 figure. “The industrial manufacturing numbers were low in the first quarter, following by probably a lower growth number. The real rate is however above 120. Therefore, I expect a cut in interest rate this week, which is also supported by the global markets,” Çağlayan noted.