Turkey’s current account deficit drops in August thanks to foreign trade performance
Turkey’s current account deficit fell in August and the last 12 months with the main contribution coming from foreign trade figures. While exports increased in many product groups, imports decreased.
Based on data announced by the Central Bank of Turkey for August 2018, a current account surplus of US$2.6 billion was observed. On the other hand, 12-month current account deficit fell to US$ 51.1 billion. It was reported that positive developments in foreign trade had caused this favorable improvement in current account deficit.
The sector, which had the highest increase in amount of goods exported, was “”motor vehicles, tractors, bicycles, motorcycles and other motor vehicles, their parts, parts and accessories“. It was followed by iron and steel sector with US$ 1.7 billion and iron and steel goods with US$ 557 million.
On the other hand, the sector, which had the highest increase in terms of percentage, was recorded as “nickel and products made of nickel” with 117.3 percent followed by live animals sector with 79.5 percent and pharmaceutical products with 57.4 percent.
But the major factor in the decrease of the current account deficit in August was the decline in imports. In the eight months of the year, while imports in 36 chapters (out of 97) decreased, the highest n decline was observed in “precious and semi-precious stones, precious metals, pearls, imitation jewelery and metal coins” with US$ 2.2 billion followed by ships and vehicles and vehicles floating in the water” with US$ 984.5 million and “electrical machinery and devices, sound recording-export, television image-sound recording-export devices, parts-accessories” with US$ 946 million. The total decline in these 3 categories contributed to the foreign trade deficit with US$ 4.1 billion.
