Automotive Exports September 2023

Türkiye logs larger-than-expected
current account surplus in June
Türkiye’s current account in June registered
a surplus for the first time in almost two
years, official data showed, driven partly by
robust tourism and lower energy bills.
The balance registered a surplus of $674
million (TL 18.23 billion), swinging from
a $7.84 billion deficit in May, the Central
Bank of the Republic of Türkiye (CBRT) said.
It marked the first surplus since October
2021. The figure came in larger than
expected by market surveys. A forecast in
a Reuters poll was for a surplus of around
$426 million. An Anadolu Agency (AA)
survey forecasted a surplus of $422 million.
Excluding gold and energy, the two main
drivers of the deficit so far, the balance
registered a net surplus of $5.58 billion in
June, the central bank data showed.
The trade gap came in at $3.69 billion,
while the services industry posted a net
surplus of $5.02 billion. Travel items, under
services, recorded a net inflow of $4.2
billion.
Primary income recorded a net outflow of
$799 million, whereas secondary income
indicated a net inflow of $151 million, the
bank said. In June, direct investments saw a
net inflow of $135 million.
The balance was expected to improve
on seasonal factors, including a lower
energy import bill, high tourism income
and monetary tightening that started after
the May elections. President Recep Tayyip
Erdoğan’s government has orchestrated a
U-turn away from policies based on interest
rate cuts that had been accompanied by
a steep fall in the Turkish lira and soaring
inflation. Since June, the country’s central
bank has reversed and hiked its policy rate
by 900 basis points to address inflation,
which leaped to a 25-year high above 85%
last year but subsequently eased to as low
as 38.21% in June. It rose again to nearly
48% due to the lira’s decline and various
tax hikes and officials have acknowledged
it would rise further toward the year-end.
CBRT Governor Hafize Gaye Erkan said the
impact of the monetary tightening cycle
would result in an improvement in the
current account in the second half of 2023.
In 2022, Türkiye’s current account deficit
was at nearly $48.77 billion.
September 2023 38