Turkey February's Current Account Deficit Expected To Be $8.5 Billion
For the month of February, the current account deficit of Turkey is expected to be around $8.5 billion, which is a record on its own! The reason behind this rapid increase in the current account deficit can be traced back to high energy and gold products.
This means that the total current account deficit of Turkey in 2023 has already reached $45 billion, which is a big number considering the economic size of Turkey.
According to a poll of 10 economists, the current account deficit for the month of February will be somewhere around $8.5 billion. The lower end of the forecast predicts a number of $5.78 billion, while the upper range is set at $9 billion.
Turkey's Trade Deficit Reached 51.4%
Overall, its trade deficit of Turkey has widened to almost 51.4% during February and reached a value of $12.08 billion.
According to experts, Turkey had to export a lot of energy products and gold. But due to the recent price increases, the country had to spend more money on its imports.
If we exclude the imports of gold and energy, the trade deficit of Turkey is only $2.46 billion, which tells us the country is suffering a lot from high-energy products.
The current account deficit forecast for the year 2023 is expected to be around $45 billion. Similarly, the forecasted range of 2023's trade deficit is somewhere between $35 - $63 billion.
According to Turkey's own forecast, the deficit for the year 2023 will be around $22 billion, which is almost half of 2022's deficit of $48.8 billion.
Even during 2022, the major reason behind the jump in deficit could be traced back to the higher energy and gold prices.
For now, the authorities in Turkey are working on a new plan set forth by President Tayyip Erdogan. The plan is to turn the current account deficit of Turkey into a current account surplus.
While we look at the economic progress in Turkey, it is also vital to note that the country was hit by massive earthquakes a few months ago.
As a direct result of the earthquakes, the country's exports dropped by $1.5 billion in February, which also contributed to the widening of the current account deficit.