Current Account Surplus Reaches $566 Million in Turkey
Turkey's current account surplus for the month of July has exceeded market expectations, reaching $566 million, as reported by the country's central bank on September 12. This marks a significant increase from the revised $330 million surplus in June and a notable shift from the $5.5 billion deficit recorded in July 2023.
Excluding Gold and Energy
Excluding gold and energy, the current account in Turkey posted a surplus of $4.9 billion for the month, indicating a positive trend in the country's economic indicators.
Goods Deficit and Services Sector
The goods deficit in July amounted to $5.2 billion, while the services sector showed a net surplus of $6.9 billion. Within the services sector, the travel category notably contributed to a net inflow of $5.6 billion, highlighting the resilience of this segment.
Current Account Balance for January-July Period
For the period spanning January to July, Turkey's current account balance reported a deficit of $16.1 billion, reflecting the overall economic performance over the seven-month period.
Foreign Investment Inflows
In July, direct investment in Turkey recorded a net inflow of $670 million, while portfolio investment also demonstrated a strong performance with a net inflow of $3.726 million, indicating confidence in the country's economic prospects.
Treasury and Finance Minister's Comments
Reacting to the latest data, Treasury and Finance Minister Mehmet Şimşek emphasized that the declining current account deficit and the increase in foreign resource inflows are contributing to permanent reserve accumulation. He highlighted that Turkey aims to sustain its macroeconomic and financial stability achievements through structural reforms and attracting international direct investments to drive technological transformation and enhance competitiveness.
Official Reserves and Future Outlook
Moreover, official reserves in Turkey saw an increase of $5.366 million, underlining the country's efforts to bolster its financial position. Minister Şimşek pointed out that the highest monthly portfolio inflow in a decade occurred in July, with the total inflow in the past year amounting to $34.5 billion, signaling positive momentum in the economy.
