Turkey's current account deficit widens in February

Turkey’s current account deficit widens in February

Turkey's balance of payments on current accounts indicated a deficit of $2.1 billion in February. Imports soared by 44% to $5.6 billion from $3.9 billion recorded last year while exports rose by 19% to $3.8 billion. With these figures, current account deficit in the first two months of 2004 widened to $2.85 billion against $1.38 billion in the same period last year. The current account deficit continued to widen in February despite the sharp year-on-year increase in tourism revenues and shuttle trade performance. Tourism revenues were recorded as $503 million in February, indicating a 20.3% increase. In February, current account was mainly financed by portfolio transactions and other investments. However, net errors and omission item impacted total balance negatively as it posted a deficit of $937 million in February. In March, the current account deficit may continue to widen further due to expanding foreign trade deficit. However, in the coming two quarters, current account deficit is not expected to generate a problem for Turkey because of the rising tourism revenues and shuttle trade.