Turkey current account surplus narrows to $1.55 billion
Turkey’s current account surplus shrank to $1.55 billion in October as a surplus in traded goods turned into a deficit, the central bank said.
The surplus declined by $1.08 billion compared with October 2018, the bank said in a statement on its website on Wednesday. Turkey had posted a surplus of $2.35 billion in September and $2.68 billion in August.
The October surplus was expected to be $1.65 billion, according to a Reuters poll of economists published this week.
The 12-month rolling current account surplus declined to $4.34 billion, or 0.6 percent of economic output, from $5.9 billion in September. It was the fifth-straight month of annual surpluses.
Turkey’s current account is posting an annual surplus for the first time in more than a decade and a half. The country had reported a deficit of almost $60 billion, or 6.5 percent of economic output, prior to a currency crisis last year. The turmoil slashed the spending power that Turks used to buy imported goods such as cars, television sets and mobile phones.
But a widening trade deficit means the current account surplus has begun to narrow – imports grew by an annual 11 percent in November while exports fell 1.1 percent, according to preliminary data. The Reuters poll saw the surplus totalling $2 billion for 2019.