Economy management’s new model does not seem to have achieved targeted results

Turkey’s economic management had commissioned the “new model” to narrow the current account deficit, which was recorded at $14.9 billion last year, and switch to surplus. The model was aimed at increasing growth, employment, exports and investments by keeping interest rates low. Experts had said that they found this model, which they could not explain logically, to be ‘too optimistic’ in the simplest terms. Since September 2021, when the model began to be implemented, almost all indicators seem to be upside down.

Turkey’s current account deficit is expected to reach $5.37 billion in March due to rising energy prices

According to the results of a Reuters poll with the participation of a total of 13 institutions, oil, natural gas and grain prices that have risen rapidly due to the Russia-Ukraine war will increase Turkey’s current account deficit. The risks in tourism revenues will also negatively affect the current account balance.

The fact that energy prices have increased compared to last year shows that it is not possible to switch to a current account surplus this year.

The survey has current account deficit estimates for March of between $4.27 billion and Dec 7 billion.