Türkiye's current account deficit exceeded expectations in January

In January, balance of payments defined foreign trade deficit was recorded as USD 5.6 billion. Net errors and omissions item drew attention with a deficit of USD 5.3 billion.

According to the Central Bank of the Republic of Türkiye, the annualized current account deficit was realized as USD 11.5 billion, while the balance of payments-defined foreign trade deficit was calculated as USD 57.6 billion. In the same period, the services balance posted a surplus of USD 61.9 billion, while the primary income balance posted a deficit of USD 16 billion.

Net inflows from the services balance amounted to USD 3.1 billion. Net income from transportation services was USD 1.4 billion, while travel revenues were USD 2.4 billion.

In the financing of the annualized current account deficit in January, net direct investments contributed USD 4.5 billion, net portfolio investments USD 13.7 billion and loans USD 37 billion. On the other hand, net currency and deposits and commercial loans had a negative impact of USD 13.1 billion and USD 2.8 billion, respectively. The Central Bank's net reserve increase in foreign currency was recorded as USD 13.2 billion.