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<\/p>\nT\u00fcrkiye’s current account deficit narrowed to its lowest level in seven months in May, helped by a strong services surplus despite higher energy costs, while officials said they expect further improvement in the second quarter.<\/p>\n
The current account balance posted a deficit of almost $1.46 billion in May, the smallest since October 2025, according to data released by the Central Bank of the Republic of T\u00fcrkiye (CBRT) on Monday.<\/p>\n
Excluding gold and energy, the balance recorded a surplus of nearly $3.63 billion. The balance of payments-defined foreign trade deficit stood at $4.34 billion during the month.<\/p>\n
On a rolling 12-month basis, the current account deficit narrowed to about $37.3 billion, while the foreign trade deficit reached $74.4 billion.<\/p>\n
The services balance generated a 12-month surplus of $62.5 billion, while the primary income deficit stood at $24.1 billion and the secondary income shortfall at $1.3 billion.<\/p>\n
In May, net services revenues totaled $5.21 billion. Travel services generated a surplus of $3.82 billion, while transportation services contributed $2.24 billion.<\/p>\n
Treasury and Finance Minister Mehmet \u015eim\u015fek said the annualized shortfall remained at a sustainable level despite global economic shocks.<\/p>\n
“The current account deficit remaining at sustainable levels despite shocks in the global economy demonstrates the resilience of our economy while supporting macro-financial stability,” \u015eim\u015fek wrote on the social media platform X.<\/p>\n
\u201cThe gross external financing requirement and the gross external debt stock remain below their long-term averages,\u201d he said<\/p>\n
\u015eim\u015fek added that the government would continue implementing structural reforms aimed at increasing high value-added production and exports while reducing T\u00fcrkiye’s dependence on imported energy.<\/p>\n
Monday’s data showed central bank’s foreign exchange reserves declined by $3.3 billion in May, bringing the cumulative fall to $32.3 billion.<\/p>\n
The “net errors and omissions” item recorded a net outflow of $77 million, while cumulative outflows reached $18.48 billion in the first five months of the year.<\/p>\n
Net direct investment recorded an outflow of $455 million in May.<\/p>\n
Foreign direct investment into T\u00fcrkiye totaled $296 million, while Turkish residents invested $751 million abroad.<\/p>\n
In real estate, Turkish residents purchased $143 million worth of property overseas, while foreign investors bought a net $184 million of property in T\u00fcrkiye.<\/p>\n
Portfolio investments registered net outflows of approximately $3.1 billion, with non-residents selling a net $2.79 billion in equities and investment funds and $287 million in government domestic debt securities.<\/p>\n
Trade Minister \u00d6mer Bolat said the current account deficit is expected to remain below its historical average as a share of gross domestic product, supported by resilient goods and services exports.<\/p>\n
Bolat said the annualized current account surplus excluding gold and energy reached $29.5 billion.<\/p>\n
He noted that the net energy deficit rose 53.3% year-over-year to $4.5 billion in May due to higher energy prices, contributing to the overall current account gap.<\/p>\n
Annualized services exports increased 3.2% from a year earlier to $122.2 billion, while travel revenues reached $60.1 billion and transportation revenues $42.7 billion, Bolat said.<\/p>\n
Combined goods and services exports rose 3.1% to $395.7 billion on a rolling 12-month basis.<\/p>\n
Following a 29.6% decline in the foreign trade deficit in April and a further 15.6% drop in May, Bolat said the current account had improved despite geopolitical tensions pushing up commodity and energy prices.<\/p>\n
He said the current account deficit, which reached $23.6 billion in the first quarter, could ease to between $12 billion and $12.5 billion in the second quarter, helped by a 10.2% increase in goods exports and a 9.1% improvement in the foreign trade deficit.<\/p>\n
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