Türkiye's current account deficit shows signs of improvement

Turkish Treasury and Finance Minister Mehmet Şimşek provided insights into the nation's economic outlook, anticipating a significant reduction in the current account deficit.
12.03.2024 16:41:10 / English News

In a recent social media post, Şimşek highlighted the positive trend in the annual current account deficit, noting a substantial improvement compared to previous months, reaching $22.6 billion in January.

Şimşek highlighted a substantial improvement, pointing out that the annual current account deficit in January has shrunk by a staggering $22.6 billion compared to May 2023. This positive trend extends into February, with a continued decrease in the foreign trade deficit. These developments are expected to bring the current account deficit below 3% of the national income by the end of the first quarter.

Ocak ayında yıllık cari açıktaki iyileşme mayısa göre 22,6 milyar dolara ulaştı.

Şubat ayında da devam eden dış ticaret açığındaki düşüşle ilk çeyrek sonunda cari açığın milli gelire oranı yüzde 3’ün altına gerileyecektir.

Bu yılı OVP’deki yüzde 3,1 olan öngörümüzden daha düşük… pic.twitter.com/iXifjxdD9n
— Mehmet Simsek (@memetsimsek) March 12, 2024

Looking ahead, Minister Şimşek expressed optimism that this downward trajectory will hold. The government's aim is to achieve a year-end deficit ratio that's even lower than the initial projection of 3.1% outlined in the Medium-Term Program (MTP). A reduced deficit approaching a sustainable level is anticipated to contribute to both improved macroeconomic stability and a smoother disinflation process.

This news offers a welcome reprieve for the Turkish economy, which has grappled with a high current account deficit in recent years. The decline signifies progress towards a more balanced and resilient financial landscape. (ILKHA)