UPDATE - Türkiye runs current account gap of $3.3B in February

UPDATES WITH REMARKS BY TURKISH TREASURY AND FINANCE MINISTER; REVISES DECK

By Gokhan Ergocun

ISTANBUL (AA) - Türkiye's current account balance posted a deficit of $3.26 billion in February, the Turkish Central Bank announced on Wednesday.

The current account balance excluding gold and energy trade posted a surplus of $2.1 billion, the bank added.

The country's goods deficit was $4.75 billion in the month, while services saw a net surplus of $2.38 billion.

Travel, under services, recorded a net inflow of $1.96 billion in February.

Direct investments posted a net inflow of $142 million, the bank said.

Mehmet Simsek, the Turkish treasury and finance minister, said on X that the current account deficit was below expectations and fell by $5.8 billion on a yearly basis.

He also said the deficit recovered by $28.3 billion from its historically high level in May 2023.

The decline in the deficit showed that the government's economic program is working, he noted.

With the program's disinflation policies, the deficit will continue to drop gradually in the coming months, he stressed.

This downward trend signals that the current account deficit to GDP ratio may drop to below 2.5% at the end of this year, he said.

The decline in the current account deficit is contributing to increasing foreign exchange reserves and disinflation via financial stability.