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Turkey’s current account deficit seen at $984 million in March: Reuters Poll

Economy

Turkey’s current account deficit seen at $984 million in March: Reuters Poll

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ISTANBUL (Reuters) – Turkey’s current account is expected to show a deficit of $984 million in March, a Reuters poll showed on Friday, as the trade deficit remains low due to high import prices and economic activity remains weak.

The current account deficit has narrowed significantly since a currency crisis last year saw the lira fall some 30%, raising import prices and leading to a narrowing in the trade deficit, which forms the largest chunk of the current account balance.

The median estimate of 16 economists showed a deficit of $984 million in March, with predictions ranging between deficits of $400 million and $1.2 billion.

Turkey’s annual current account deficit, which climbed to $58 billion in May last year, has been one of the main concerns of investors because it makes the economy reliant on speculative inflow to finance the shortfall.

Eleven economists participated in the annual current account poll for 2019. Their median estimate showed a deficit of $13 billion with predictions ranging between deficits of $5.3 billion and $23.3 billion.

The annual deficit narrowed to $27.8 billion last year from $47.35 billion in 2017.

Turkey’s foreign trade deficit narrowed 63.7 percent year-on-year in March to $2.137 billion, data from the statistics institute showed on Tuesday.

The central bank is expected to announce March current account data at 0700 GMT on May 13.

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