UPDATE - Turkey's current account gap shrinks in June

By Dilara Hamit

UPDATES WITH MORE DETAILS

ANKARA (AA) - Turkey’s current account balance posted $548 million deficit this June, the nation’s Central Bank said on Friday.

The bank’s latest balance of payments figures revealed that Turkey’s current account gap in June fell by nearly 82% year-on-year, improving from around $3 billion deficit in the same month last year.

Turkey’s 12-month rolling surplus totaled $538 million, according to the Central Bank of Turkey (CBRT).

An Anadolu Agency survey on Wednesday showed that economists had forecast a deficit of $376 million.

Expectations of a group of 17 economists ranged from a $150 million deficit to a $792 million deficit for the sixth month of 2019.

The survey also showed the end-2019 current account balance is expected to show a deficit of $7.1 billion, with estimates ranging from $2 billion surplus to $11.5 billion deficit.

"This development in the current account is mainly attributable to $1.82 billion decrease in the goods deficit recording net outflow of $2.60 billion, as well as $754 million increase in services surplus to $3.16 billion," the Central Bank said.

It noted that gold and energy excluded current account indicated $2.28 billion surplus, in an increase of $1.69 billion compared to a year ago.

Travel item under services recorded a net inflow of $2.52 billion in June, increasing $646 million on a yearly basis, the CBRT said.

Investment income under primary income item indicated a net outflow of $1.06 billion increasing by $102 million compared to the same month last year, it added.

Last year, the current account balance posted a deficit of around $27.6 billion, improving from a nearly $47.5 billion deficit in 2017.

The figure was the lowest since 2009, while Turkey’s highest annual current account deficit over the last decade was seen in 2011, with $74.4 billion.

The country's new economic program, announced in September, is targeting a current-account-deficit-to-GDP ratio of 4.7% in 2018, 3.3% this year, 2.7% in 2020, and 2.6% in 2021.