Minister Bolat announces surplus in Turkiye's current account

Minister of Trade Ömer Bolat announced that the current account deficit decreased by 55 percent in the first half of 2024 and stated that in June 2024, there was a surplus of $407 million in the current account.

In a statement on his social media account, Minister Bolat highlighted that the increase in exports and the decrease in imports supported a balanced growth structure and strengthened macroeconomic stability. He said, "In June 2024, the current account surplus was $407 million. During the January-June period of 2024, the current account deficit decreased by 55 percent compared to the same period last year, amounting to $16.5 billion. As a result, the annualized current account deficit, which peaked at $57 billion in May 2023, decreased by $32.2 billion over the following months, reaching $24.8 billion by June 2024. During the same period, the annualized foreign trade deficit decreased by $34.6 billion. Consequently, compared to May 2023, the annualized current account deficit was reduced by 56.4 percent due to the effects of implemented foreign trade policies. In June 2024, our annualized exports increased by 2.9 percent year-over-year, rising to $258.8 billion. Meanwhile, annualized imports decreased by 6.6 percent to $346.4 billion. The annualized foreign trade deficit fell by 26.6 percent to $87.6 billion, and the export-import coverage ratio improved by 6.9 percentage points to 74.7 percent."

Emphasizing that the decrease in the foreign trade deficit was accompanied by an increase in service exports, Minister Bolat said, "Service revenues set a new record in June, reaching $105.8 billion on an annualized basis. Travel revenues, a component of services, increased to $51.9 billion. A significant reduction in the current account deficit was achieved through support aimed at boosting goods and services exports and measures to reduce imports. According to provisional foreign trade statistics released by our Ministry in July, exports increased by 13.8 percent while imports decreased by 7.9 percent. As a result, the foreign trade deficit saw a substantial decline of 42.3 percent."

Noting that the annualized current account deficit is anticipated to fall below $20 billion in July, Bolat said, "With the increase in exports and the decreasing trend in imports, the current account deficit is expected to be below the Medium Term Program (MTP) target by the end of the year. Positive developments in the foreign trade balance contribute to more balanced economic growth, while improvements in the current account bolster macroeconomic stability. The increase in exports and the decreasing trend in imports are expected to persist throughout 2024, with foreign trade anticipated to positively impact the current account balance and economic growth. As the Ministry of Trade, we will continue our efforts with determination, working closely with our manufacturers and exporters to increase our share in global goods and services exports."