Türkiye posts current deficit after 6 months, while trade volume and turnover boom

Türkiye recorded a current account deficit in November, marking the first shortfall in six months, according to the Central Bank of the Republic of Türkiye (CBRT).

On the other hand, trade sales volume surged by 8.7% year-on-year during the month, while total turnover grew by 42.4% compared to the same period in 2023, the Turkish Statistical Institute reported on Monday.

The CBRT announced on Monday that the current account balance posted a $2.871 billion deficit, following five consecutive months of surplus. Türkiye had previously achieved its longest stretch of surpluses in five years, with positive balances recorded from June through October.

Meanwhile, trade sales volume increased by 0.9% on a monthly basis, and the total turnover index rebounded, rising 2.6% in November after a 1.3% decline in October.

Current account deficit

• Excluding gold and energy, the current account showed a surplus of $3.443 billion for the month.
• According to annualized data, Türkiye’s current account deficit stood at $7.4 billion in November, with the balance of payments-defined foreign trade deficit reaching $54.6 billion.

• The balance of payments-defined foreign trade deficit amounted to $5.235 billion in November. During this period, net inflows from the services balance reached $3.725 billion, with transportation services and travel contributing $1.338 billion and $2.63 billion, respectively.
• Central Bank reserves recorded a net increase of $1.327 billion in November.

Trade sales volume

• Retail sales climbed 16.4% year-on-year and wholesale trade sales rose 5.3%. On a monthly basis, retail sales and wholesale sales were up 1.9% and 0.6%, respectively.
• Food-drink-tobacco sales increased 11.1%, non-food sales rose 21.9%, and automotive fuel sales posted a slight increase of 0.1%.

• Under non-food items, computers, books, telecommunications equipment sales rose 40.9%, electronic goods and furniture sales 9.8%, textiles, clothing and footwear sales 6.7%, and medical goods and cosmetic sales 15.4%.
• Sales via mail orders and Internet also increased 14.1% year-on-year

Turnover indices

• On a monthly basis, the total turnover index grew 2.6% in November, rebounding from a 1.3% decline in October.
• The industry index rose by 30.1%, construction by 55.9%, trade by 44.6%, and services by 53.3% in November on an annual basis.
• Among the sub-indexes, industry rose by 2.3%, construction by 0.9%, trade by 3.1%, and services by 2.1% in November.