Turkish Finance and Treasury Minister Mehmet Şimşek has indicated that by the end of the first quarter, the current account deficit as a percentage of the Gross Domestic Product (GDP) will fall below 3%, attributing this positive development to the continued decline in the trade deficit in February.
In a statement, Minister Şimşek stated, “With the ongoing decrease in the trade deficit in February, we anticipate that the current account deficit as a percentage of GDP will drop below 3% by the end of the first quarter. We expect to conclude this year with a ratio close to the sustainable and lower level than the 3.1% forecast in the Medium-Term Program (OVP). This performance will not only strengthen macroeconomic stability but also contribute to the ongoing disinflation process.”
Minister Şimşek shared the January balance of payments data on his social media account, highlighting an improvement in the annual current account deficit compared to May of the previous year, reaching $22.6 billion.
He further emphasized the positive trajectory, stating, “This performance, coupled with the sustained decrease in the trade deficit in February, reinforces our expectation of achieving a current account deficit ratio below 3% of GDP by the end of the first quarter.” The minister expressed confidence that this achievement would contribute significantly to macro-financial stability and further support the ongoing efforts to combat inflation.
source: aa.com.tr / prepared by Melisa Beğiç