Turkey's current account deficit shrinks to $3.1 billion in March

Turkey's current account deficit shrunk to some $3.1 billion in March, a fall of $666 million compared to the same month last year, according to a Central Bank of the Republic of Turkey (CBRT) report released yesterday.

The 12-month rolling deficit dropped to $33.02 billion in the third month of the year, down from $33.75 billion this February, according to the report.

"This development in the current account is mainly attributable to a $793 million decrease in the deficit in goods item recording $2.8 billion," the bank said.

"On the other hand, in the same period, secondary income net inflows recorded $158 million, increasing $124 million, while the services item net inflows recorded $672 million, increasing $41 million," the bank added.

The travel item, which is a vital part of services, received a net inflow of $749 million, rising $28 million year-on-year in March, the bank also said.

Investment income on the other hand indicated a net outflow of $983 million, up $287 million compared to the same month last year.

"Direct investment recorded a net inflow of $1.16 billion (increase in net liabilities), increasing $235 million compared to the same month of the previous year," the bank added.