Turkey presents an optimistic picture regarding its current account balance. According to data released by the Central Bank today, a current account surplus of $566 million was recorded in July 2024. This development indicates an improvement, bringing the annualized current account deficit down to $19.1 billion, a $37.1 billion improvement compared to July 2023.
Experts highlight positive developments in foreign trade, noting that goods exports reached an all-time high in July. Additionally, measures taken to reduce import levels contributed to a 42% reduction in the trade deficit, leading to a current account surplus. Moreover, an increase in travel revenues positively impacted the services balance, further contributing to the current account balance.
According to the released data, reserves increased by $5.4 billion in July, while portfolio investments marked the highest monthly inflow in the last decade. This situation is linked to the transformation in Turkey’s economic structure and strategic shifts in foreign trade policies. Experts expect the ratio of the current account deficit to GDP to decrease from 4% at the end of 2023 to 1.7% in 2024.
In light of these developments, the improvement in the current account and budget deficits, reserve increases, and achieving macroeconomic stability are expected to provide significant support in the fight against inflation.