Turkey Current Account Deficit Widens

(RTTNews) - Turkey's current account deficit increased notably in the final month of 2024 from a year ago, data published by the Central Bank of the Republic of Turkey on Thursday.

The current account shortfall rose to $4.65 billion from $1.7 billion in the corresponding month last year.

The deficit on trade in goods totaled $6.24 billion, up from the $4.54 billion shortfall a month ago, as imports grew faster than exports.

Meanwhile, the surplus on services trade grew to $3.15 billion from $2.92 billion. Under the services, net inflow in transportation and travel items realized $1.46 billion and $2.14 billion, respectively.

Primary income showed a shortfall of $1.7 billion, widened markedly from the prior month's $0.24 billion deficit. At the same time, the secondary income showed a surplus of $113.0 million versus $149 million last year.

The capital account balance was in a deficit of $9 million, turned from a surplus of $1.0 million a year ago. The financial account shortfall was $4.6 billion in December, narrowed from $6.2 billion.

In 2024, the current account deficit was mainly financed through direct investments with a net inflow of $4.7 billion, portfolio investments with a net inflow of $11.7 billion, and loans with a net inflow of $26.2 billion, the data showed.