Turkiye’s trade deficit shrinks in ten months

May 16, 2024 admin-dominor

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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