April Current Account Deficit Reaches 5.29 Billion Dollars – Latest Update
The Central Bank of the Republic of Turkey (CBRT) has released the Balance of Payments Developments for April 2024, revealing some key figures regarding the country’s economic situation.
In April, the current account recorded a deficit of 5 billion 285 million US dollars, with a deficit of 497 million US dollars when excluding gold and energy. The balance of payments showed a foreign trade deficit of 7 billion 649 million US dollars, while net inflows from the services balance reached 3 billion 110 million US dollars, primarily driven by net revenues from the travel sector amounting to 2 billion 548 million US dollars.
The primary income balance saw a net outflow of 1 billion 355 million US dollars, while the secondary income balance recorded a net inflow of 609 million US dollars.
In terms of the financial account, direct investments saw net inflows of 856 million US dollars, while portfolio investments recorded a net inflow of 2 billion 23 million US dollars. Non-residents made significant net purchases in both the stock market and the government domestic debt securities market.
Banks and other sectors issued bonds abroad, with net borrowing of 758 million US dollars and 500 million US dollars, respectively. Other investments saw an increase in effective and deposit assets of domestic banks in their foreign correspondents by 3 billion 298 million US dollars.
Domestic deposits of foreign banks also increased, totaling 1 billion 604 million US dollars, with a rise in both foreign currency and Turkish lira deposits.
On the other hand, loans provided from abroad resulted in net use by banks, General Government, and other sectors, amounting to US$ 892 million, US$ 52 million, and US$ 140 million, respectively. Additionally, official reserves decreased by 2 billion 392 million US dollars in April.
These figures provide insight into Turkey’s economic performance in April and highlight areas where improvements may be needed to stabilize the country’s balance of payments.
