Turkey’s current account deficit, known as the “soft spot” of the Turkish economy, has been narrowing over the past few years. The deficit in June exceeded expectations slightly with data placing it $3.36 billion; however, this still marks a decline from May's $4.44 billion deficit.
According to the Turkish Central Bank, during the January-June period the current account deficit narrowed to $22.7 billion. Turkey’s annualised current account deficit narrowed to $44.69 billion in June, down from $45.1 billion in May.
In its statement, the Turkish Central Bank said the decline in the current account deficit is caused by the annual fall in foreign trade deficit to $4.84 billion. June’s exports were recorded at $12.8 billion, while the imports slightly rose to $17.7 billion.
According to the government’s medium term programme, by the end of 2015 Turkey’s current account deficit should reach $46 billion, or 5.4 percent of GDP.