Türkiye's current account deficit shows signs of improvement

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.

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)