Turkish deficit underlines growth conundrum
Turkey's current account deficit widened beyond expectations in September, increasing concern that demand for imported goods, which is helping to feed economic growth, will lead to more losses for the lira and exert further pressure on inflation.
The gap grew to $4.53 billion in the month from $975 million a year earlier, central bank data published on Monday showed. Analysts had expected a deficit of $4.1 billion. The deficit on a 12-month rolling basis increased to $39.3 billion.
President Recep Tayyip Erdoğan is seeking to fuel spending by consumers and businesses to boost economic growth, while warning against an increase in interest rates by the central bank, which is grappling with double-digit inflation.
The lira dropped 0.4 percent to 3.8787 per dollar at 1:28 p.m. in Istanbul.
Turkey imported $6.67 billion more goods than it exported, an increase of $3.41 billion, the central bank said.