Turkey's current account deficit at record high since 2012

The current account deficit in February 2023 stood at $8.783 billion, while the 12-month current account deficit reached $55.4 billion, which is the highest level since August 2012, data released by the Central Bank of Turkey showed.

The payment balance data indicates that the trade deficit was $10.401 billion in February. During this period, inflows from the services balance were $2.334 billion, while net income from the travel item was $1.652 billion.

The primary income balance recorded a net outflow of $815 million in February, while the secondary income balance recorded a net inflow of $99 million.

Economists had expected the current account to show a deficit of $8.18 billion in February, but the actual figure was higher than expected.

Serkan Ozcan, the deputy chair of Future Party, took to Twitter to criticize the results:

"Year's first 2 months current account deficit is $18.8 billion! Record-breaking 12-month deficit with $55.4 billion! Due to the collapse created by those who set out to close the current account deficit, the Central Bank is now wandering around the Grand Bazaar as a currency exchange office! Who would believe that such an institution can reduce inflation?"

Under President Tayyip Erdogan's new plan, authorities are working to turn Turkey's chronic current account deficit to a surplus, which the central bank says will help establish price stability.

Economists are monitoring the impact of the massive earthquakes that hit the country's southeast as well as the course of energy and gold imports. The earthquakes led to a $1.5 billion drop in exports in February, trade ministry data showed.