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Turkiye's trade deficit shrinks in ten months

16 May 2024 20:44 (UTC+04:00)
Turkiye's trade deficit shrinks in ten months
Ulviyya Shahin
Ulviyya Shahin
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The trade deficit amounted to $4.5 billion in March. Decreasing by 13% on a monthly basis, the trade deficit witnessed a significant reduction from $57 billion to $31.2 billion over the past 10 months, marking a 45.2% decrease. Notably, the 'net errors and omissions' category, representing uncertain outbound money flows, stood at $9.557 billion in March, compared to $4.8 billion in February.

According to the payment balance data released by the Central Bank of the Republic of Turkey, the current account deficit decreased by 13.4% in March, dropping from $5.2 billion to $4.5 billion. Excluding gold and energy, Turkey recorded a surplus of $782 million in the current account.

Dropping from $57 billion to $31 billion

The annualised current account deficit, which peaked at $57 billion in May 2023, declined by $25.8 billion in subsequent months, reaching $31.2 billion as of March 2024. During the same period, the annualised trade deficit decreased by $30.4 billion. Consequently, the current account deficit decreased by 45.2% compared to May 2023, largely due to the impact of trade policies.

$14.3 Billion Uncertain Money Outflow in Two Months

Defined as the trade deficit in the balance of payments, the trade deficit stood at $5.193 billion in March. During this period, service-related inflows amounted to $2.241 billion, while net income from travel reached $2.104 billion. A net outflow of $1.604 billion was recorded in the primary income balance item, and $12 million in the secondary income balance item. The 'net errors and omissions' category recorded a deficit of $9.56 billion in March, compared to $4.85 billion in the previous month.

Measures Yield Results

Commenting on the figures, Minister of Trade Ömer Bolat stated, "The decline in the trade deficit is accompanied by an increase in service exports. Service revenues reached a record $103.2 billion on an annualised basis in March. Travel revenues surpassed $50 billion. A significant reduction in the current account deficit has been achieved with the implementation of measures aimed at increasing goods and service exports and reducing imports."

Economic Recovery to Continue This Year

Minister Bolat evaluated the balance of payments statistics, stating, "Positive developments in the trade balance contribute to more balanced economic growth on the one hand and strengthen macroeconomic stability by improving the current account balance on the other. It is expected that the trend of increasing exports and decreasing imports will continue throughout 2024, contributing positively to the current account balance and economic growth."

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