Turkey posts first current account surplus since October last year
Turkey’s economy recorded a current account surplus for the first time since October last year.
The current account posted a surplus of $528 million compared with a deficit of $4.07 billion in August 2020, the central bank said on its website on Monday. The 12-month rolling current account deficit narrowed to $23 billion, it said.
The surplus was driven by exports, the central bank said.
Turkish exports are increasing, helping to narrow the current account deficit, as demand for goods picks up in Europe. Demand for imports has failed to keep pace due to inflation of almost 20 percent and a decline in the lira’s value against the dollar, which makes goods from abroad more expensive to purchase. The lira hit a new record low of 8.99 against the dollar on Friday.
The gold and energy excluded current account was $4.43 billion in surplus, almost triple the year-ago figure. That was the biggest surplus since at least 2019, the data showed.
Portfolio investment recorded a net inflow of $1.34 billion during August, the bank said.