Turkey’s C/A deficit estimated at $3.4 billion in June; 40.2 billion dollars at the end of the year: Reuters poll

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A money changer holds Turkish lira banknotes next to U.S. dollar banknotes at a currency exchange office in central Istanbul April 15, 2015. REUTERS/Murad Sezer

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ISTANBUL, Aug 5 (Reuters) – Turkey’s current account is expected to post a deficit of $3.4 billion in June and end the year with a deficit of more than $40 billion, a Reuters poll showed on Friday. as soaring energy prices widen the deficit.

The trade deficit, a major component of the current account balance, soared 184.5% in June to $8.17 billion, mainly due to Turkey’s heavy energy import bill.

In a Reuters poll of 11 economists, the median estimate for the current account deficit in June was $3.4 billion, with forecasts ranging from $2.35 billion to $5.2 billion.

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The deficit was estimated at $40.15 billion for all of 2022, with a forecast range of $35 billion to $51 billion.

Economists have revised up their deficit forecast for 2022 due to soaring energy prices. The median forecast was $29 billion five months ago and $40.30 billion in last month’s poll.

As part of President Tayyip Erdogan’s economic plan, which prioritizes growth, exports and jobs, with low interest rates, the central bank has cut its key rate by 500 basis points since September , triggering a currency crisis that saw the lira lose 44% against the dollar last year. year.

The government says Turkey’s chronic current account deficit, which stood at $14.9 billion last year, will turn into a surplus under the plan.

However, Turkish exporters are revising down their year-end targets, which could derail the government’s plans as new orders fall amid a global slowdown and inflationary pressures. Read more

Turkey’s central bank is expected to announce June current account data at 07:00 GMT on August 11.

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Reporting by Ali Kucukgocmen and Ezgi Erkoyun Editing by Ece Toksabay

Our standards: The Thomson Reuters Trust Principles.

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