Thu. Jun 20th, 2024

Annual Current Account Deficit Surges to $31.5 Billion in April

By Haberyaz Jun10,2024

The annual current account deficit rose to $31.5 billion in April, driven by an increase in the trade deficit due to the effects of the holiday season. However, the positive trend in external financing inflows continues.

In the first four months of last year, there was a net outflow of $1.5 billion in portfolio investments, whereas the same period this year saw a net inflow of $5.8 billion. The rollover ratios for external debt, including medium-to-long-term bonds, increased from 90% to 158% for the banking sector and from 72% to 116% for the non-bank private sector in the same period.

Finance Minister Mehmet Şimşek noted that the steps taken in line with the program will also lead to an increase in international direct investments. Şimşek expects the current account deficit to hover between $24-27 billion for the rest of the year and to be significantly lower than the Medium-Term Program (MTP) forecast of $34.7 billion by the year-end.

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