Last year saw Turkish exports grow at an incredible clip, leading analysts and commentators (including ourselves) to predict that it would eventually start to bring down the current account deficit, which is an important economic indicator and one of the few blemishes left to negatively color the Turkish economy.
Well, it has now started to fall strongly according to the latest data. BGC Partners have just reported that the current account deficit fell 13% in November, falling for the first time in 2 years.
At $5.2 billion the current account deficit is still close to 10 percent of gross domestic product (GDP), which concerns economists. On a 12-month basis, the current account deficit narrowed from $78.6 million to $77.8 million.
"Sadly we still have a current account deficit close to 10 percent of GDP. Even if we see an improvement in seasonally adjusted figures, the speed of improvement is not enough to curb the demand in the foreign exchange market," said BGC Partners Chief Economist Özgür Altuğ to Anatolia news agency.
Altuğ also predicts a further fall in the current account deficit for next year, when he sees it dropping to around 8% of GDP.