Turkey’s current account deficit recorded $3.36 billion in June

Turkey's current account deficit was $3.36 billion in June indicating a decrease from $4.93 billion compared to June of the previous year, according to data released by the Central Bank of Republic of Turkey yesterday. The deficit dropped $812 million from June 2014, although this figure was below market and expert expectations.

The current account deficit for January to June was announced as $22.7 billion while the 12-month rolling deficit was $44.7 billion. "The improvement in the current account mainly stemmed from the balance of goods, which decreased by $1.4 billion from June 2014," the report said.

The services surplus decreased $460 million to $2.29 billion while the primary income deficit was $909 million. The current account deficit figure for May was revised from $3.99 billion to $4.44 billion.

Economy Minister Zeybekci evaluated the data for the first half of the year, saying that the current account deficit's shrinking is good news for the economy. The main reason for this positive development is the decrease in the foreign trade deficit, Zeybekci said, underlining that Turkey's trade deficit has been 15.1 percent lower this year compared with the previous year, which corresponded to a saving of $4.4 billion. Zeybekci added that exports and imports are decreasing everywhere around the world as global trade contracts, and Turkey will undoubtedly be effected as well. However, he said that exports haven't dropped as steeply as in the rest of the world, thanks to the Economy Ministry's precautions and Turkish exporters' selflessness. Exports decreased 8.2 percent while imports decreased 10.9, the minister stressed, underlining that this situation will continue to be a positive drive behind lowering the current account deficit.

Zeybekci said they would like the public to know that the previous results and the ministry's expectations are concordant, and they will continue to be closely following the global economy and taking action. Zeybekci expects the foreign trade deficit to further decline in the second half of 2015 with the government, the real estate sector and NGOs working hand in hand.