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UPDATE1 - Turkey's 11-mo c/a deficit narrows to $38.7 bln

Author Yurkie Ali
UPDATE1 - Turkey's 11-mo c/a deficit narrows to $38.7 bln Author: Logwin. License: All rights reserved.

ISTANBUL (Turkey), January 13 (SeeNews) – Turkey's current account deficit narrowed to $38.716 billion (32.718 billion euro) in the first eleven months of 2014 from $56.665 billion a year earlier, the country's central bank said on Tuesday.

The decrease is mainly attributable to a $15.17 billion contraction in the foreign trade deficit to $56.67 billion, a $2.4 billion rise in services' surplus to $24.85 billion and a $576 million decline in primary income deficit to $7.92 billion, the central bank said.

In November alone, Turkey’s current account gap widened to $5.636 billion from $4.215 billion a year earlier, central bank data showed.

The 12-month rolling c/a deficit rose to $47.1 billion, or 5.9% of the country’s gross domestic product (GDP), as of November from $45.7 billion (5.7% of GDP) in October, mainly due to higher gold imports. The figure is worse than the government’s and Erste's 5.7% forecast, the bank said in a short note.

“The financing side, on the other hand, improved visibly through the loan generation and accelerating portfolio inflows,” Erste said.

Erste maintained its 5.7% c/a deficit forecast for the end of 2014.

($ = 0.845 euro)