Türkiye extends current account surplus to 4th consecutive month

ISTANBUL

Türkiye ran a current account surplus of $457 million in October, extending its positive trend to the fourth consecutive month, led by direct investments improving financial quality, a rise in production capacity, and increasing employment.

The country’s economy continued to grow for the last 21 quarters, led by the economic administration’s program supporting the disinflation process.

The current account surplus, excluding gold and energy, was a little over $7 billion in October, while the foreign trade deficit defined by balance of payments was $5.9 billion, according to the Turkish Central Bank (TCMB) data.

On an annual basis, the current account deficit was $22 billion, and the foreign trade deficit defined by balance of payments was $67.3 billion in October.

Ibrahim Unalmis, director of the financial research center at Istanbul Bahcesehir University, told Anadolu that Türkiye continues to run current account surpluses for four consecutive months while exports rise. He said that, normally, when an economy runs a four-month current account surplus, it is due to slowdowns and weak demand.

Ismet Demirkol, founder of consultancy firm Pariterium, told Anadolu that the rise in tourism revenue among services exports made the largest contribution to the current account surplus, but more high-tech, green energy, industry, and digitalization exports are needed to extend the surplus. He added that industrial production needs to accelerate to make up for the decline in tourism revenues.

Timothy Ash, senior strategist at RBC Bluebay Asset Management, told Anadolu that the current account surplus is not surprising, and that the annualized current account deficit was a low figure considering the recent real appreciation of the Turkish lira.