BusinessTurkiye

Turkish Finance Minister Anticipates Reduction in Turkiye’s Foreign Trade and Current Account Deficits

Minister of Treasury and Finance, Mehmet Şimşek, addressed concerns over the recent uptick in the annual foreign trade deficit, attributing it to temporary calendar effects in April. However, he reassured stakeholders, stating, “We expect a decrease in the annual foreign trade deficit and current account deficit again in May.”

Analyzing April’s Trade Statistics: Understanding Calendar Effects

Şimşek shared April’s foreign trade statistics via his social media channels, highlighting the transient nature of the deficit increase due to calendar anomalies. He emphasized that this trend would also impact the current account deficit.

“We anticipate a decline in both the annual foreign trade deficit and the current account deficit in May. Although sporadic fluctuations may occur throughout the year due to temporary effects, we project the current account deficit-to-national income ratio to stabilize at approximately 2.5% by the second quarter,” Şimşek affirmed.

Medium-Term Outlook: Projections and Targets

He further added, “By year-end, we anticipate the current account deficit to markedly decrease, aligning with the targets outlined in the Medium-Term Program.”

Source: Trthaber / Prepared by Irem Yildiz

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