Türkiye’s current account deficit widens to $4.65 billion in December

Türkiye’s current account deficit expanded beyond expectations in December 2024, reaching $4.65 billion, according to data released by the Central Bank of the Republic of Türkiye (CBRT).

Analysts had forecasted a $4 billion shortfall for the month.

Despite the overall deficit, the current account balance excluding gold and energy recorded a surplus of $2.47 billion, indicating underlying economic strength in key sectors.

For the entire 2024 fiscal year, Türkiye’s current account deficit amounted to $9.97 billion, marking a substantial improvement from the $39.9 billion deficit recorded in 2023.

The December data also showed a sharp increase in the monthly deficit, rising from a revised $2.73 billion in November to $4.65 billion in December.

The significant reduction in the annual deficit suggests positive economic momentum, supported by strong exports and a decline in energy import costs. However, the larger-than-expected gap in December signals ongoing external pressures on Türkiye’s economy.

The CBRT’s balance of payments data will be closely watched in the coming months as policymakers navigate global financial conditions and domestic economic challenges. (ILKHA)