Tue, 05 Dec 2023

ISTANBUL, Turkey: Turkey's current accounts are expected to record a deficit of $3.4 billion in June and end the year with a deficit of more than $40 billion, according to a Reuters survey.

In the survey of 11 economists, the median estimate for the current account deficit in June was $3.4 billion, with forecasts ranging from $2.35 billion to $5.2 billion.

The trade deficit, a major component of the current account balance, soared 184.5 percent in June to $8.17 billion, mainly driven by Turkey's hefty energy import bill.

The Turkish deficit is projected to reach $40.15 billion for 2022 as a whole, with the range of forecasts between $35 billion and $51 billion.

Economists have been revising up their forecasts for the 2022 deficit due to surging energy prices. The median forecast was $29 billion five months ago and $40.30 billion in last month's survey.

The government says Turkey's chronic current account deficit, which stood at $14.9 billion last year, will turn to a surplus under President Tayyip Erdogan's economic plan, which prioritizes growth, exports and employment with low interest rates.

However, Turkish exporters are revising down year-end targets, potentially derailing the government's plans as new orders drop amid signs of a global slowdown and inflationary pressures.

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