Turkey posts $2.5B current account deficit in January

Turkey’s current account posted a net deficit of 2,556 million dollars in January. Excluding gold and energy, the current account showed a net surplus of 3,595 million dollars.

Duvar English

The Turkish Central Bank reported a deficit of $2.56 billion for the current account in January, while it showed a surplus of $3.59 billion. excluding gold and energy.

In January 2023, the current account deficit was $10.4 billion.

The goods deficit was recorded at $4.45 million, while services recorded a net surplus of $2.80 million. 

In terms of external loans, banks and the the government recorded net borrowing of $912 million and $17 million respectively, while other sectors saw net repayments of $890 million. 

The bank announced that official reserves declined by $6.21 million.

Treasury and Finance Minister Mehmet Şimşek stated that the improvement in the annual current account deficit in January reached 22.6 billion dollars compared to last May, when the new economic administration appointed after the general elections. 

"With the decline in the foreign trade deficit, which also continued in February, the ratio of the current account deficit to national income will fall below three percent at the end of the first quarter," Şimşek said.

Şimşek stated that their performance would strengthen macro financial stability and contribute further to the disinflation process.