- Turkey's import-reliant economy, worth $717 billion in 2020
ISTANBUL: Turkey's current account is expected to show a deficit of $3.03 billion in May, a Reuters poll showed on Monday, with the full-year deficit seen narrowing thanks to rising exports and a partial recovery in tourism revenues.
Turkey's import-reliant economy, worth $717 billion in 2020, has been prone to big trade deficits and a boom-bust growth cycle that was exacerbated by last year's pandemic.
The current account recorded a deficit of $36.72 billion in 2020 due mostly to a sharp rise in the trade deficit and plunging tourism revenues due to coronavirus fallout.
The median estimate in a Reuters poll of 12 economists showed a deficit of $3.03 billion in May, with estimates ranging between deficits of $1.5 billion and $3.2 billion. The deficit was $3.76 billion in May 2020.
A major component of the current account, the trade deficit widened 20.2% year-on-year to $4.13 billion in May, according to the Turkish Statistical Institute.
An uptick in tourism revenue and exports are expected to narrow the deficit in 2021 as a whole compared to last year. The median estimate for the full-year deficit was $23.25 billion, in a range of $18 billion to $29.1 billion.
Turkey's 12-month current account ended 2019 in surplus for the first time since 2001, though the monthly reading dipped back towards the end of the year as the economy recovered from a recession brought on by a 2018 currency crisis.
The central bank is scheduled to announce the May current account data at 0700 GMT on July 9.