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Türkiye logs highest current

account surplus in 5 years


by Daily Sabah with Agencies

A cargo ship passes under a bridge as it sails through the Bosporus Strait in Istanbul,
Türkiye, June 28, 2023. (Reuters Photo)

Türkiye's current account balance registered its highest surplus in


five years in August, while the 12-month rolling gap plunged to its
lowest since the end of 2021, official data showed on Friday.

The balance posted a surplus of $4.3 billion in August, the Central


Bank of the Republic of Türkiye (CBRT) said, compared with a
revised surplus of $778 million the previous month.

That marked the highest level since August 2019 and the third
straight monthly surplus.
:
The current account is the most complete measure of trade because
it includes investment flows and trade in merchandise and services.
A deficit means Türkiye is consuming more from overseas than it is
selling abroad.

Excluding gold and energy, the balance registered a net surplus of


$9 billion in August, the central bank data showed.

The goods deficit was at $2.9 billion, while services posted net
inflows of $8.7 billion; under services, tourism saw a net inflow of
$6.8 billion.

Primary income recorded a net outflow of around $1.5 billion and


secondary income saw net inflows of $14 million.

Direct investments recorded net inflows of $62 million in August, the


data showed.

Gap slips to below 1% of GDP

Between January and August, the current account balance


registered a deficit of $9.6 billion

The 12-month rolling gap has maintained a narrowing trend to $11.3


billion, translating into around 0.9% of GDP, from $15.1 billion a
month ago.

That marked the lowest annual reading since the end of 2021 and a
sharp decline of $44.4 billion since May 2023, said Treasury and
Finance Minister Mehmet Şimşek.

Şimşek said portfolio inflows amounted to $24.9 billion in the first


eight months, while banks and the real sector posted foreign debt
rollover ratios of 167% and 132%, respectively.
:
"The reduction in the current account deficit and strong external
financing is strengthening our macro-financial stability and
bolstering the resilience of our economy," the minister wrote on
social media platform X.

Also evaluating the data, Vice President Cevdet Yılmaz said the
decrease in the current account deficit is reinforcing macro-financial
stability and contributing to the disinflation process.

"With improvements in the trade balance and support from the


services sector, the positive trend in the current account balance
persisted through August 2024," Yılmaz wrote on X.

"The positive results we are seeing in macroeconomic and financial


indicators reflect the effectiveness of our economic program," he
noted.

"We expect a reduction in the current account deficit, driven by


improvements in the trade balance and increasing services revenues,
to continue and to comfortably achieve our medium-term program
target of 1.7% of national income by the end of 2024."

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