Turkey's current account posts 50.6 bln USD deficit

The current account balance posted a net deficit of 50.6 billion USD in the first seven months of 2011, indicating an increase of 26.8 billion USD over the same period of 2010.

Central Bank of Turkey stated on Monday that deficit in the current account balance increased 112.9 percent.

The deficit had been 23.7 billion USD in the first seven months of 2010, noted the CB.

The current account balance posted a deficit of 3.5 billion USD in July 2010, and 5.3 billion USD in July 2011.

Foreign trade deficit increased 28.1 billion USD to 54.4 billion USD which caused the rise in current account deficit.

Under services account, the travel revenues increased by 20.9 percent to USD 11.744 billion and the travel expenditures increased 8.9 percent to USD 2.936 billion in comparison with the same period of the previous year.

The main sub-items under investment income, namely direct investment, portfolio investments and other investment consisting of the interest income and expenditures recorded a net outflow of USD 4.974 billion in the first seven months, increasing USD 892 billion observed during the same period of the previous year.

Non-residents' net direct investment in Turkey reached USD 9.133 billion in the first seven months, increasing USD 4.638 billion over the same period of previous year. The investment in energy sector became the most visible component of overall net direct investment inflow of USD 2.756 billion recorded in July.

Residents' net direct investment abroad recorded USD 1.449 billion in the first seven months.

Non-residents' equity security transactions recorded net sales of USD 672 million in the first seven months of this year, in contrast to the net purchases of USD 114 million in July.

Non-residents realized net purchases of USD 13.296 billion of government securities in January-July 2011, including the net purchases of USD 1.716 billion observed in July.

Banks' currency and deposit assets in the form of foreign exchange and Turkish Lira recorded an increase of USD 790 million in the first seven months as a result of USD 1.832 million increase in Turkish Lira, in contrast to USD 1.042 billion decrease in foreign exchange.

Official reserves, a sub-item under reserve assets, recorded an increase of USD 9.091 billion in the first seven months of 2011, despite of USD 665 million decrease in July.


/World Bulletin/