FX.co ★ Turkey's Current Account Deficit Narrows In December

In the month of December, Turkey's current account deficit witnessed a slight decrease, predominantly due to a positive boost in both primary and secondary income accounts. This data was shared by the Central Bank of the Republic of Turkey on Tuesday.

The deficit reduced from $2.77 billion in November to $2.09 billion by December. A rise in imports caused an increase in the deficit on trade in goods, taking it from the previous shortfall of $4.49 billion to $4.59 billion; undermining the growth in exports.

However, the surplus on trade services declined to $2.57 billion from the earlier $3.05 billion recorded in March. Within these services, travel items noted a net inflow of $1.69 billion.

Primary income displayed a deficit of $233 million, which was notably less than November's deficit of $1.33 billion. Concurrently, the secondary income started showing a $154 million surplus after a $14 million deficit.

The capital account deficit also shrank to $8 million from $14 million recorded in the previous session. There was also a reduction in the financial account deficit to $3.18 billion from $3.77 billion reported in December, as per the data.