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Turkey’s Current Account Deficit Remains on a Widening Track

Turkey posted a December current‑account deficit of $7.3 bn, well above the $5.3 bn forecast, pushing the 12‑month rolling deficit to $25.2 bn (about 1.8 % of GDP). The gap widened mainly because the trade balance slipped to a $‑7.4 bn deficit and primary‑income balances deteriorated, although lower energy and gold imports softened the impact. On the capital side, inflows stalled at $2.1 bn, forcing official reserves to shrink by $4.1 bn as resident outflows of $7 bn were only partially offset by $9 bn of non‑resident inflows. Analysts expect a modest further widening of the current account this year while capital inflows remain sluggish.