Turkey's Current Account Posts $2.7 Billion Surplus in September as Annual Deficit Falls to $39.2 Billion

Turkey's current account recorded a surplus of $2 billion and 720 million in September, according to balance of payments data issued by the Central Bank of Turkey, while the surplus rose to $7 billion and 342 million when gold and energy are excluded.

On an annual basis, the twelve-month rolling current account deficit fell to about $39.2 billion, while the trade deficit under the balance of payments definition stood at $76.8 billion. By contrast, the services balance posted a surplus of $66.1 billion, while the primary income balance recorded a deficit of $26.3 billion and secondary income a deficit of $2.1 billion.

In September specifically, net services revenues reached $9 billion and 14 million, of which $3 billion and 88 million came from transport services and $6 billion and 573 million from tourism.

Treasury and Finance Minister Mehmet Simsek announced that goods and services exports exceeded $410 billion on an annual basis, expressing that "the stability of the current account deficit-to-GDP ratio" indicates the growing economy's resilience even in the midst of one of the largest energy supply shocks in recent history. Simsek estimated that the current account deficit-to-GDP ratio would remain below the Medium-Term Program target, at about 2.2% for the third quarter.

Trade Minister Omer Bolat, for his part, confirmed that the current account deficit in the first nine months of the year reached $28 billion, and that annual travel revenues reached $61.6 billion and transport revenues $45.1 billion. He noted that the trade deficit in October fell 11.4% year-on-year to $6.7 billion, concluding that the current account would record a surplus for the fourth consecutive month.

The Central Bank recorded a decline in official reserves of $10 billion and 13 million during September.