March Current Account Balance Data Announced for the Turkish Economy
With the Turkish economy posting a current account deficit of $9.7 billion in March, the 12-month total deficit reached $39.7 billion.
The Turkish economy recorded a current account deficit of $9.7 billion in March, a period when the impacts of the war were felt. According to Central Bank data, the annualized current account deficit rose to $39.7 billion, while the outflow momentum in the net errors and omissions item also continued.
March Current Account Balance Figures
The Turkish economy posted a current account deficit of $9.7 billion in March, during which the war had an impact. Economists participating in the Bloomberg survey had also expected the current account deficit to be at this level.
In February, the monthly current account deficit was recorded at $7.5 billion. Thus, a significant increase in the deficit was observed on a monthly basis.
Annualized Current Account Deficit
According to data from the Central Bank of the Republic of Turkey, as of March, the 12-month current account deficit rose to $39.7 billion. In the previous month of February, the 12-month current account deficit stood at the $35 billion level.
Gold, Energy, and Foreign Trade
In March, the current account balance excluding gold and energy posted a deficit of $3.9 billion. Meanwhile, the foreign trade deficit defined under the balance of payments was recorded at $9.5 billion.
Services Balance and Incomes
Net inflows originating from the services balance stood at $2.6 billion in March. Under this item, net revenues stemming from transportation services and the travel item amounted to $1.6 billion and $2.3 billion, respectively.
Financing Items and Reserves
Net direct investments contributed $2.1 billion, loans contributed $38.6 billion, and trade credits contributed $3 billion to the financing of the March annualized current account deficit.
Conversely, net portfolio investments had a negative impact of $3.3 billion, and net banknotes and deposits had a negative impact of $19.7 billion. The Central Bank's net reserve decrease materialized as $52.5 billion.
Developments in Net Errors and Omissions
In March, the outflow momentum in net errors and omissions continued. According to CBRT data, the net errors and omissions outflow was $7 billion in March, while the 12-month net errors and omissions outflow rose to $33.3 billion.