Türkiye records $2.9B current account surplus

Türkiye’s current account balance recorded a $2.98 billion surplus in September, according to the Central Bank of the Republic of Türkiye (CBRT).

The bank noted on Tuesday that the current account balance, excluding gold and energy, recorded a net surplus of $7.7 billion for the month.

In September, the goods deficit was $3.1 billion, while services posted a net inflow of $7.4 billion; travel items, under services, recorded a net inflow of $5.97 billion.

Primary income saw a net outflow of $1.23 billion, and secondary income recorded a net outflow of $59 million in September.

Direct investment recorded a net inflow of $649 million in the month.

‘Lowest level in 33 months‘

Treasury and Finance Minister Mehmet Simsek shared data showing that the annual current account deficit has reached its lowest level in 33 months, falling by $46 billion compared to May 2023. Simsek detailed the stats on his official X post:

The narrowing trade deficit was accompanied by a positive trend in the services balance, with annual services income reaching $112 billion in September. The robust outlook in external financing continues. In September, there was a portfolio inflow of $2.9 billion, bringing the total for the first nine months to $28 billion. During this period, the foreign debt rollover ratios for banks and the real sector reached 166% and 138%, respectively.

Treasury and Finance Minister Mehmet Simsek

Simsek said “We anticipate the annual current account deficit”, estimating the annual current account deficit as a percentage of gross domestic product (GDP) to decline to 0.8% in the third quarter.

“An improving current account balance, reduced external financing needs, and increased capital inflows are contributing to reserve accumulation and supporting macroeconomic stability”, Simsek noted.