According to the news of Hürriyet Daily News, Turkey’s economy ran a current account deficit of $1.8 billion in January, below the median of analysts’ forecasts, the Turkish Central Bank revealed on March 11.

The gap widened $1.5 billion compared to the same month of last year, bringing the 12-month rolling surplus to $6.5 billion, the bank said in a statement.

The median of economists’ forecasts surveyed by Turkey’s state-run Anadolu Agency was $2.4 billion of the current account deficit for January, while the year-end overall current account forecast was $14.3 billion gaps.

The gap was mainly driven by nearly $2 billion year-on-year rise in good deficit which recorded net outflow of $3.2 billion in January.

The net inflow at the services item rose $78 million to $1.6 billion, the bank said.

“Travel item under services recorded a net inflow of $1.1 billion, increasing by $112 million compared to the same month of last year,” it added.

According to the Turkish Statistical Institute (TÜİK), the country’s foreign trade deficit grew 94.3% on an annual basis, reaching $4.45 billion in January.

The bank also made revisions for previous years in line with foreign trade statistics disseminated by TÜİK.

“Current account deficit decreased by $8.4 billion in 2013, $6.1 billion in 2014, $5.0 billion in 2015, $4.7 billion in 2016, $6.0 billion in 2017, $7.5 billion in 2018 and current account surplus increased by $6.3 billion in 2019,” the bank said.

Source: Hürriyet Daily News / link: https://www.hurriyetdailynews.com/current-account-gap-at-1-8-bln-in-january-152900
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Balance of Payments Developments – January 2020

Current Account

• The current account deficit recorded USD 1,804 million indicating an increase of USD 1,528 million compared to January of the previous year, bringing the 12-month rolling surplus to USD 6,494 million.
• The monthly development in the current account is mainly attributable to USD 1,994 million increase in the goods deficit recording net outflow of USD 3,245 million.
• Gold and energy excluded current account indicated USD 3,220 million surplus, which was observed as USD 3,409 million surplus in the same month of the previous year.
• The net inflows at the services item increased by USD 78 million and realized as USD 1,586 million.
• Travel item under services recorded a net inflow of USD 1,100 million, increasing by USD 112 million compared to the same month of the previous year.
• Investment income under primary income item indicated a net outflow of USD 223 million, decreasing by USD 310 million compared to the same period the previous year.
• Secondary income recorded net inflow of USD 195 million increasing by USD 95 million compared to the same month of the previous year.

Financial Account

• Direct investment recorded a net inflow USD 765 million, decreasing by USD 26 million compared to the same month of the previous year.
• Portfolio investment recorded a net outflow of USD 1,222 million. As regards to sub-items through liabilities, both non-residents’ equity securities and government domestic debt securities transactions recorded USD 333 million and USD 498 million of net sales, respectively.
• Regarding the bond issues in international capital markets, banks realized net borrowing of USD 234 million.
• Under other investment, banks’ currency and deposits within their foreign correspondent banks and nonresident banks’ deposits held within domestic banks increased by USD 2,098 million and USD 2,193 million respectively, on net basis.
• Regarding the loans provided from abroad, banks and other sectors realized net repayments of USD 1,503 million and USD 219 million respectively, while General Government realized net borrowing of USD 4 million.
• Official reserves recorded net outflow of USD 2,934 million.

Revisions in Balance of Payments Statistics for 2013-2019

In line with the “Future Revisions” announced on March 5, 2020;

• Services item including “International Trade in Services Statistics” (ITSS) initiated to release by Turkish Statistical Institute (Turkstat) has been revised based on administrative records of the Revenue Administration for the period of 2013-2015 and year-2019, and on the results of the ITSS for the period of 2016-2018.

• Foreign trade data for 2013-2019 have been revised in line with of Foreign Trade Statistics disseminated by Turkstat based on general trade system. Trade Credit and Advances item under Financial Account has also been revised due to the updates in foreign trade data.

As a result of abovementioned revisions;

• Services item increased by USD 9.8 billion in 2013, USD 7.7 billion in 2014, USD 5.4 billion in 2015, USD 4.9 billion in 2016, USD 6.1 billion in 2017, USD 5.3 billion in 2018 and USD 4.7 billion in 2019.

• Current account deficit decreased by USD 8.4 billion in 2013, USD 6.1 billion in 2014, USD 5.0 billion in 2015, USD 4.7 billion in 2016, USD 6.0 billion in 2017, USD 7.5 billion in 2018 and current account surplus increased by USD 6.3 billion in 2019.

• Net errors and omissions decreased by USD 10.5 billion in 2013, USD 5.3 billion in 2014, USD 3.4 billion in 2015, USD 4.3 billion in 2016, USD 6.6 billion in 2017, USD 10.6 billion in 2018 and USD 7.4 billion in 2019.

Source: Central Bank of Republic of Turkey / link: https://www.tcmb.gov.tr/wps/wcm/connect/en/tcmb+en/main+menu/statistics/balance+of+payments+and+related+statistics/balance+of+payments+statisticss
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

According to the news published by Central Bank of Republic of Turkey, regarding the table of Foreign Exchange Assets and Liabilities of Non-Financial Companies as of November 2019, assets increased by USD 1 million while liabilities decreased by USD 1,502 million, compared to October 2019. Accordingly, Net Foreign Exchange Deficit recorded USD 175,947 million indicating a decrease of USD 1,503 million compared to October 2019.

On the asset side; deposits held by domestic banks decreased by USD 1,212 million, direct investments abroad and export receivables increased by USD 216 million and USD 947 million respectively, indicating an increase of USD 1 million in assets. On the liability side; domestic loans decreased by USD 2,350, while external loans (excluding trade credits) and import payables increased by USD 7 million and USD 841 million respectively compared to October 2019. Accordingly, liabilities recorded a decrease of USD 1,502 million.

In November 2019, short-term domestic loans increased by USD 149 million, while long-term domestic loans decreased by USD 2,499 million compared to October 2019. Short-term external loans increased by USD 741 million, while long-term external loans increased by USD 107 million.

In November 2019, short-term assets recorded USD 103,993 million while short-term liabilities recorded USD 94,446 million. Accordingly, Short-Term Foreign Exchange Surplus recorded USD 9,547 million indicating a decrease of USD 1,105 million compared to October 2019. The share of the short-term liabilities in total liabilities is 32 percent.

Source: Central Bank of Republic of Turkey / link: https://www.tcmb.gov.tr/wps/wcm/connect/en/tcmb+en/main+menu/statistics/monetary+and+financial+statistics/fx+assets+and+liabilities+of+nonfin+companies
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

According to the news of Hürriyet Daily News, Turkey’s current account balance saw a deficit of $518 million in November 2019, official figures revealed on Jan. 13.

The balance posted a $1 billion surplus in the same month of 2018, according to the Central Bank of Turkey (CBRT).

The bank’s balance of payments figures showed the country’s 12-month rolling surplus amounted to $2.7 billion.

An Anadolu Agency survey on Jan. 10 showed that economists had estimated current account balance to post a deficit of $450 million in November.

The forecast of a group of 12 economists hovered between $250 million and $660 million.

“This development is mainly attributable to $1.1 billion deficit recorded in the goods item, against a surplus of $412 million observed in the same month of 2018,” the bank said.

The CBRT data also showed Turkey’s current account deficit — excluding gold and energy — posted a $3.65 billion surplus in November 2019, down $930 million in the same month last year.

Travel items, which constitute a major part of the services account, saw a net inflow of nearly $1.4 billion, increasing by $177 million year-on-year in November.

The country’s new economic program, unveiled last September, forecast a current-account-surplus-to-GDP ratio of 0.1 percent for 2019.

Source: Hürriyet Daily News / link: http://www.hurriyetdailynews.com/current-account-posts-518-mln-deficit-in-november-150901
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

According to the news of Hürriyet Daily News, Turkey posted a surplus of some €618 million ($681 million) in its trade with the European Union in September, the block’s statistical office announced on Nov. 15.

According to the Eurostat data, Turkey’s export to the EU valued at some €6.4 billion ($7 billion) in the month, while the import from the block stood at €5.8 billion ($6.4 billion).

In the first nine months of 2019, Turkey’s export to the EU amounted to €59.7 billion ($66 billion), while its import from the block totaled €53.4 billion ($59 billion), registering a €6.3 billion ($7 billion) trade surplus.

EU’s trade in September

Eurostat also noted that the block’s total exports of goods reached €168.3 billion ($185 billion) in September, up by 4.3% year-on-year.

It added imports of the EU across the world stood at €173.3 billion (nearly $190 billion) in the month, up by 6.4% compared to September 2018.

“As a result, the EU28 recorded a €5 billion deficit in trade in goods with the rest of the world in September 2019, compared with €1.5 billion in September 2018,” it said.

Intra-EU28 trade rose to €301 billion ($332 billion) in September, with a 2.3% rise compared with the same period last year, while the extra-EU28 exports of goods were €168.3 billion ($185 billion), up by 4.3%.

Source: Hürriyet Daily News / link: http://www.hurriyetdailynews.com/turkey-posts-nearly-681m-trade-surplus-with-eu-in-september-148753
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

It followed a 12.0% rise in March. Imports surged 15.1% versus the median estimate for a 14.8% increase, rising for the fourth straight month on rising energy costs. The overall trade balance came to a surplus of 481.7 billion yen ($4.33 billion), versus the median estimate for a 521 billion yen surplus.

The data also showed Japan’s trade surplus with the United States narrowed. But Japan’s trade surplus with the United States fell 4.2% in April from a year ago to 586.7 billion yen ($5.27 billion).

Source: Republic of Turkey Ministry of Economy

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.