Turkey’s current account deficit rises beyond expectations in March

Turkey’s current account deficit (CAD) increased by $1.58 billion to $4.96 billion in March year-on-year, exceeding expectations that predicted it would rise to between $4.3 to $4.4 billion, the central bank announced on Tuesday.

According to data released by the bank, the deficit for the previous 12-month period also surged from $43.92 billion to $45.5 billion as of the end of March.

The increase was a disappointment after a decline in February, when it dropped 4.2 percent year-on-year. It had also fallen in January primarily due to falling global oil prices and a decline in imports.

Net inflows of direct investment totaled $280 million in March, a heavy decline of $622 million year-on-year. Gold exports decreased by $427 million year-on-year, reaching $822 million in March.

Turkey has a particularly high CAD due to its dependency on energy imports.

Global oil prices that had significantly declined last year had helped to alleviate the deficit however, prices have started to rebound.