Türkiye's current account deficit is expected to increase slightly but remain at a sustainable level of around 1.5% of national income by the end of the year, Treasury and Finance Minister Mehmet Şimşek said on Wednesday.
According to the government's medium-term program, published in September last year, the current account deficit is expected to be 2% of gross domestic product (GDP) at the end of 2025.
Şimşek's comments came a day after official data showed the deficit widened in June to $2 billion, exceeding a market forecast of about $1.38 billion and rising from a gap of $750 million in May.
The annualized current account deficit stood at $18.9 billion, the Central Bank of the Republic of Türkiye (CBRT) said. Şimşek said they anticipated the gap to be 1.3% of GDP in the second quarter.
The current account deficit remains at sustainable levels as production increases, with strong exports and tourism revenues, along with the rising euro/dollar parity, supporting the current account balance, the minister said on social media platform X.
"We anticipate that decreasing global uncertainties and improving domestic financial conditions, accompanied by disinflation, will contribute to economic activity in the coming period," he added.
Şimşek also referred to Monday's data that showed Türkiye's industrial production expanded by 7.3% year-over-year in the April-June period, saying the output had expanded for three consecutive quarters.
"In addition to this outlook in industry, the positive trend in construction and services indicates a strengthening of annual growth in the second quarter," he wrote.
The data showed Türkiye's industrial output expanded by 8.3% on a yearly basis in June. This was the fastest growth since February 2024, when production surged 11.2%.
Monthly, overall industrial production expanded 0.7%, slower than the 3.2% rebound in the previous month.
