Minister Bolat announces surplus in Turkiye’s current account

August 15, 2024 admin-dominor

Minister of Trade Ömer Bolat announced that the current account
deficit decreased by 55 percent in the first half of 2024 and
stated that in June 2024, there was a surplus of $407 million in
the current account.

In a statement on his social media account, Minister Bolat
highlighted that the increase in exports and the decrease in
imports supported a balanced growth structure and strengthened
macroeconomic stability. He said, “In June 2024, the current
account surplus was $407 million. During the January-June period of
2024, the current account deficit decreased by 55 percent compared
to the same period last year, amounting to $16.5 billion. As a
result, the annualized current account deficit, which peaked at $57
billion in May 2023, decreased by $32.2 billion over the following
months, reaching $24.8 billion by June 2024. During the same
period, the annualized foreign trade deficit decreased by $34.6
billion. Consequently, compared to May 2023, the annualized current
account deficit was reduced by 56.4 percent due to the effects of
implemented foreign trade policies. In June 2024, our annualized
exports increased by 2.9 percent year-over-year, rising to $258.8
billion. Meanwhile, annualized imports decreased by 6.6 percent to
$346.4 billion. The annualized foreign trade deficit fell by 26.6
percent to $87.6 billion, and the export-import coverage ratio
improved by 6.9 percentage points to 74.7 percent.”

Emphasizing that the decrease in the foreign trade deficit was
accompanied by an increase in service exports, Minister Bolat said,
“Service revenues set a new record in June, reaching $105.8 billion
on an annualized basis. Travel revenues, a component of services,
increased to $51.9 billion. A significant reduction in the current
account deficit was achieved through support aimed at boosting
goods and services exports and measures to reduce imports.
According to provisional foreign trade statistics released by our
Ministry in July, exports increased by 13.8 percent while imports
decreased by 7.9 percent. As a result, the foreign trade deficit
saw a substantial decline of 42.3 percent.”

Noting that the annualized current account deficit is
anticipated to fall below $20 billion in July, Bolat said, “With
the increase in exports and the decreasing trend in imports, the
current account deficit is expected to be below the Medium Term
Program (MTP) target by the end of the year. Positive developments
in the foreign trade balance contribute to more balanced economic
growth, while improvements in the current account bolster
macroeconomic stability. The increase in exports and the decreasing
trend in imports are expected to persist throughout 2024, with
foreign trade anticipated to positively impact the current account
balance and economic growth. As the Ministry of Trade, we will
continue our efforts with determination, working closely with our
manufacturers and exporters to increase our share in global goods
and services exports.”

—

Source link