Türkiye’s current account deficit drops by 55% in first half of 2024

Türkiye has achieved a significant reduction in its current account deficit during the first half of 2024, with a $407 million surplus recorded in June, the Central Bank of the Republic of Türkiye (CBRT) reported.

According to Trade Minister Omer Bolat, this improvement is attributed to a combination of rising exports and declining imports, which has bolstered the country’s macroeconomic stability.

55% reduction in account deficit

• In June 2024, Türkiye recorded a current account surplus of $407 million, marking the first surplus since September 2023.
• The current account deficit for the period from January to June 2024 stood at $16.5 billion, a 55% decrease compared to the same period in 2023.

Türkiye boost exports

• Trade Minister Bolat noted that exports have increased by 2.9%, reaching $258.8 billion by June, while imports decreased by 6.6%, down to $346.4 billion.
• The trade deficit narrowed by 26.6%, dropping to $87.6 billion.
• Bolat highlighted that the trade deficit has narrowed by 26.6%, with the export-to-import coverage ratio improving to 74.7%.

Türkiye’s economic growth

• Service exports, particularly from travel, have significantly contributed to the surplus, with annualized service revenues hitting a record $105.8 billion in June.
• The CBRT data also shows that travel revenues reached $51.9 billion, further bolstering the current account balance.

Looking forward

• Bolat highlighted that with continued support for exports and measures to curb imports, the current account deficit is expected to fall below the Medium-Term Program (MTP) target by the end of the year.
• The ongoing trend of improved trade balance is projected to contribute positively to both the current account and economic growth throughout 2024.