Turkey's current account deficit narrows by $13.6 billion in 2015


Turkey's current account deficit (CAD) narrowed by $13.6 billion in 2015 amid low energy prices, according to data released by the Central Bank of the Republic of Turkey (CBRT) on Thursday.The fall adds insult to injury amid last year's lowering of the CAD which was $32.2 billion at the start of 2015 – down from $45.8 billion at the start of 2014. In a formal statement, the CBRT said the deficit narrowed by almost $1.6 billion in December to $5.07 billion, compared to $6.8 billion in December 2014."The improvement in the current account mainly stemmed from the balance of goods item, which decreased by $1.9 billion from December 2014," the CBRT added.The services surplus fell by $171 million to $611 million, while the primary income deficit remained unchanged at $839 million.Regarding the high decline in the deficit, Economist Haluk Bürümcekçi told Anadolu Agency (AA) that the steep decline in the foreign trade deficit in December is mainly attributable to the improvement, adding that low energy imports are a good indicator that the current account deficit will continue to drop. He forecast that the deficit will be around $38 billion at the end of 2016.A slump in crude oil prices has resulted in Turkey seeing its smallest trade deficit in six years. The trade gap fell to $6.18 billion in the last month of 2015, from $8.5 billion one year earlier.Turkey's imports plunged by 17.5 percent to $18 billion, compared to an 11 percent drop in exports to $11.8 billion. Turkey's energy bill also fell to $37.8 billion in 2015 from $54.9 billion the previous year.