Central Bank Reports First Monthly Current Account Deficit After Five-Month Surplus

Date

1/16/2025 3:26:03 PM

(MENAFN- AzerNews) By News Centre

The Central bank of the Republic of Turkiye (CBRT) announced the balance of payments data for November of last year. In November 2024, the current account had a deficit of $2.9 billion. The foreign trade deficit defined by the balance of payments was $5.2 in November. During this period, net inflows from the balance of services were $3.7 billion, while net revenues from transportation services and travel items were $1.3 billion and $2.6 billion, respectively.

The current account deficit was the first on a monthly basis after a five-month surplus series. As of November 2024, the 12-month deficit was $7.4 billion. In October, the 12-month deficit was $7.1 billion. The core balance, excluding gold and energy, had a surplus of $3.4 billion in the current account. The foreign trade deficit defined by the balance of payments was $5.2 billion. According to annualized data, the foreign trade balance defined by the balance of payments also fell to its lowest level in recent years with a deficit of $54.6 billion.

In November, the money movement of unknown origin, which is expressed as net errors and omissions, gave a deficit of 1.5 billion dollars. In October, the deficit was around 153 million dollars. In the January-November 2024 period, an outflow of 15 billion 785 million dollars of unknown origin was remarkable. In November, net inflows from direct investments were recorded as 582 million dollars. While total direct investments of foreign residents to Turkiye increased by 1.1 billion dollars, direct investments of domestic residents abroad increased by 557 million dollars. Portfolio investments recorded a net inflow of 1.2 billion dollars in November.

Evaluating the figures, Minister of Trade Ömer Bolat drew attention to the increases in exports of goods and services and the decrease in imports, which minimized the current account deficit. Bolat said, "As a result of the increases in exports of goods and services and the decrease in imports, the annualized current account deficit, which was $55.6 billion in May 2023, decreased by $48.2 billion in the following months and decreased to $7.4 billion as of November 2024. In 2024, there was a $24.2 billion improvement in the foreign trade deficit, and the current account deficit is well below estimates for 2024. The export-import coverage ratio increased by 6.8 points to 76.7 percent."

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