Turkey experienced a current account surplus of $95 million in September for the first time in six years. In cumulative terms, the current account is $40.6 billion. The foreign trade deficit of $2.5 billion, which is $2.5 billion lower than the amount announced in the same month of the previous year, was very effective in supplying this surplus.
On the other hand, the net income obtained from the services balance reached $3.5 billion with an increase of $29 million. Furthermore, in nonmonetary terms, while net exports were $520 million in September, net imports were $648 million. In addition to the improvements in the trade balance, the other factors affecting this outcome also include that net income obtained from travel services under the services balance decreased $439 million to $2.9 billion. The outflows arising from investment income under the primary income balance increased $71 million to $852 million.
The current account deficit, however, which was $163 million for August, was revised to a current account surplus of $27 million. According to data released by the Central Bank of the Republic of Turkey (CBRT), in September the banking sector made a net debt repayment of $42 million. Accordingly, the net inflows stemming from direct investments – increase in liabilities – decreased to $255 million, which is $368 million lower than the amount announced in the same month of the previous year.
In the same period, portfolio investments saw a net outflow of $2.9 billion. In detailed domestic government bond markets there were $646 million in net sales. Banks also made debt repayments of $648 million for exported bonds and bills.
In September the foreign trade deficit, which accounts mostly for the current account improvement in September, tumbled 46.6 percent from $7.013 billion to $3.74 billion and the external deficit also dropped 20.2 percent to $49.02 billion from January to September, according to data disclosed by the Turkish Statistical Institute (TurkStat). Exports declined 14.2 percent to $11.7 billion and imports plummeted 25.2 percent to $15.401 billion in September compared to the same month last year.