Turkey's current account deficit keeps on increasing

Turkey’s current account deficit keeps on increasing

Turkey's balance of payments on current accounts reported a deficit of $1.56 billion in June mainly due to the expanding trade deficit. Consequently, the current account deficit widened to $9.9 billion in the first six months of the year. At the same time, 12-month deficit reached $11.7 billion. In June, current account deficit was financed by portfolio and net error and omissions items which obtained from exchange rate entry. Accordingly, official reserves increased by $767 million after the payment of $457 million done to the IMF. A slowdown in the imports demand and tourism revenues may strengthen the balance of payments on current accounts in the coming months. However, the balance of payments on current accounts is expected to post significant deficits in November and December. As a result, current accounts deficit is forecasted to reach $12.5 billion at the end of the year.