Minister of Treasury and Finance Mehmet Şimşek announced that the annual current account deficit in May decreased to $25.2 billion, the lowest level since June 2022.
Minister Şimşek shared the balance of payments data for May on his social media account.
The current account recorded a deficit of $1.235 billion in May. Şimşek pointed out that stability, confidence, and resilience have increased, the current account deficit is no longer a significant issue, the ratio of external debt to national income has decreased, and reserve accumulation has accelerated. He stated, “The annual current account deficit fell to $25.2 billion in May, the lowest level since June 2022. In addition to the decrease in the current account deficit, the positive external financing outlook continues.”
“We Will Permanently Reduce the Need for External Financing”
Şimşek highlighted that portfolio inflows reached $19.1 billion in the first five months of the year, and continued:
“Long-term external debt rollover ratios of the banking and real sectors increased from 97% and 73% in the January-May period of last year to 160% and 123% in the same period of this year, respectively. We expect the ratio of the current account deficit to national income to fall below 2.5% in the second quarter. By achieving economic transformation through structural reforms, we will reach a sustainable current account deficit. Thus, we will permanently reduce our country’s need for external financing.”
source: aa.com.tr/ prepared by Melisa Beğiç