The governor of the Central Bank of the Republic of Turkey (CBRT), Murat Uysal told Parliament Wednesday that the bank expects continued amelioration of the current account balance.
Turkey's current account balance posted a $1.2 billion surplus in July, according to the CBRT. The figure broke year-on-year records, after improving from a $2.2 billion deficit in the same month last year. The country's 12-month rolling surplus totaled $4.4 billion. The annual current account deficit has seen incremental decreases since May 2018 when it was calculated at $57.9 billion and at the end of last year the balance posted a $28 billion deficit. The CBRT governor also stressed that the recently announced data indicate that the moderate economic recovery continues and the composition of the growth supports the country's external balance. The Turkish economy shrank by 1.5% in the April-June period, according to the Turkish Statistical Institute (TurkStat), supported by soaring exports and improving agricultural production. Meanwhile, the World Bank also revised its growth forecast for the Turkish economy in a latest report released yesterday.
The World Bank Economic Update for Europe and Central Asia Fall 2019 pointed out the Turkish economy performs moderate recovery from the acute slowdown that began in the second half of last year.
Previously, it had predicted that the Turkish economy will contract by 1%, but in the latest report it said the economy will register 0% growth and stressed its expectation for a strong recovery in 2020 and 2021. Uysal expressed that the stability in the Turkish lira has been effective thanks to the improved inflation expectations and moderate domestic demand. He also underscored that a cautionary monetary policy is necessary to ensure that mitigated inflation complies with the targeted policy.