ISTANBUL: Turkey's current account is expected to show a surplus of $300 million in May, a Reuters poll showed on Monday, as a slowdown in imports continued due to sluggish economic activity.
The current account deficit has narrowed significantly since a currency crisis last year which saw the lira shed some 30pc of its value, raising import prices, which in turn narrowed the trade deficit, the main chunk of the current account balance.
The median estimate of 13 economists showed a surplus of $300 million in May, with predictions ranging between a $880 million surplus and $550 million deficit.
Turkey's annual current account deficit, which climbed to $58 billion in May last year, has been one of the main concerns of investors because it makes the economy reliant on speculative inflows to finance the shortfall.
"The rise in exports supported the current account balance in May while the growing tourism sector contributed positively," said Erkin Isik, chief economist at QNB Finansbank.
Isik said he expected the 12-month cumulative current account balance to turn positive as of June.
Ten economists participated in the annual current account poll for 2019.
Their median estimate showed a deficit of $7.1 billion with predictions ranging between deficits of $2.0 billion and $13.5 billion.
The central bank is scheduled to announce the May current account data at 0700 GMT on July 11.
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