NEWS ECONOMY NEWS        12/10/2020

Turkey’s current account deficit is USD 4.6 billion in August 2020

The Turkish Central Bank recorded a USD 4,631 million current account deficit in August 2020, a negative increase of USD 7,945 on the surplus of USD 3,314 million for the same month of the previous year.

 

The Central Bank showed exports as USD 12,262 million and imports at USD 17,609 million in August 2020, giving a trade deficit of USD 5,347 million, an increase of USD 3,948 million (282.2%) on the trade deficit of USD 1,399 million of the same month of the previous year.

 

For the first eight months of 2020, the current account deficit is USD 26,465 million, compared with a surplus of USD 5,299 million for the same period of the previous year. 

 

With regards items of the current account, the Central Bank’s analysis was as follows :

“The current account posted USD 4,631 million deficit compared to USD 3,314 million surplus observed in the same month of 2019, bringing the 12-month rolling deficit to USD 23,203 million. This development is mainly driven by the net outflow of USD 5,347 million in the good deficit increasing by USD 3,948 million, as well as the net inflow of USD 1,179 million in services item decreasing by USD 4,602 million compared to the same month of the previous year. Gold and energy excluded current account indicated USD 973 million surplus, in comparison to USD 6,249 million surplus observed in the same month of the previous year. Primary income recorded net outflow of USD 570 million decreasing by USD 589 million compared to the same month of the previous year. Secondary income recorded net inflow of USD 107 million increasing by USD 16 million compared to the same month of the previous year.”

 

With regards the related Financial Account, the Central Bank’s analysis was as follows :

“Direct investment recorded a net inflow of USD 374 million. Portfolio investment recorded a net outflow of USD 1,973 million. As regards to sub-items through liabilities, both non-residents’ equity securities and government domestic debt securities transactions recorded net sales of USD 1,007 million and USD 502 million, respectively. Regarding the bond issues in international capital markets, banks realized net borrowing of USD 286 million, while other sectors realized net repayments of USD 17 million. Under other investment, banks’ currency and deposits within their foreign correspondent banks and non-resident banks’ deposits held within domestic banks increased by USD 1,980 million and USD 2,288 million, respectively, on net basis. Regarding the loans provided from abroad, banks, General Government and other sectors realized net repayments of USD 100 million, USD 62 million and USD 774 million, respectively. Official reserves recorded net outflow of USD 7,602 million.”



Turkey’s net minimum wage has been raised 21.56% to TL 2,825.90 (USD 380) as of 01.01.2021       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s official annual inflation rate increases to 16.19% in March 2021       Turkey’s official unemployment rate jumps to 13.4% in February 2021       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 83,614,362 as of 2020 yearend       Foreigners visiting Turkey in 2020 falls by 71.7% to 12.7 million       Turkey’s private sector foreign debt is USD 173.9 billion as of 2020 yearend       Turkey’s economy grew by 1.8% in 2020       Foreign Direct Investment inflow to Turkey was USD 7.7 billion in 2020