UPDATE - Türkiye runs current account deficit of $4.5B in March

UPDATE WITH COMMENTS BY TURKISH TREASURY AND FINANCE MINISTER, STATEMENT BY TURKISH TRADE MINISTRY; REVISES SPOT

By Gokhan Ergocun

ISTANBUL (AA) - Türkiye's current account deficit was $4.5 billion in March, the Central Bank data showed on Monday.

The gold-and-energy-excluded current account balance posted a net surplus of $782 million in the month.

Goods deficit was $5.2 billion in March, while services recorded a net inflow of $2.2 billion.

Tourism, under services, posted a net inflow of $2.1 billion in March.

Primary income recorded a net outflow of $1.6 billion and secondary income recorded a net inflow of $12 million.

Direct investment recorded a net outflow of $224 million in March.

The annualized current account balance posted another deficit of $31.2 billion, decreasing 45%, the Trade Ministry announced.

Trade Minister Omer Bolat said positive developments in the foreign trade balance transformed economic growth into a more balanced structure and strengthened macroeconomic stability by providing improvement in the current account.

Mehmet Simsek, the Turkish treasury and finance minister, said on X that the eight-month-long decline in the annual current account deficit is the success of the country's economic program.

The annual improvement in the current account deficit in March compared to May 2023 was $25.8 billion, he noted.

This realization implies that the annual current account deficit declined to about 2.7% of GDP in the first quarter, he said.

Simsek also noted: "With confidence in our program, our risk premium is falling and access to external financing is increasing.

"Capital inflows excluding reserves exceeded the annual current account deficit by $20 billion in March."

With the decline in the current account deficit and the positive outlook in external financing inflows, the country's foreign exchange reserves will continue to improve, he stressed.

"This will further strengthen macro-financial stability and contribute significantly to the disinflation process," he added.