Turkey's C/a Deficit Exceeds Expectations At $4.96 Billion In March (2)

Istanbul, May 12 (DHA) - Turkey's current account deficit rose by 1.58 billion dollars to 4.96 billion dollars in March, exceeding the expectations at 4.3-4.4 billion dollars, according to the balance of payments data released by the Central Bank on Tuesday.

The 12-month rolling deficit increased to 45.5 billion dollars at the end of March, up from 43.92 billion dollars at the same period of last year.

Current account stood at 2.0 billion dollars in January and at 3.2 billion dollars in February.

The increase in the current account deficit was mainly fuelled by the foreign trade deficit which rose by 1.5 billion dollars to 4.86 billion dollars, while services surplus fell by 47 million dollars to 1.08 billion dollars and primary income deficit rose by 50 million dollars to 1.26 billion dollars, over the same period.

Net gold exports fell by 427 million dollars to 822 billion dollars in March, against in the same month of the previous year.

Direct investment item under primary income involving distributed profits recorded a net outflow of 411 million dollars increasing by 82 million dollars over the same period.

Direct investment recorded a net inflow of 280 million dollars decreasing by 622 million dollars compared to the same month of the previous year.

Portfolio investment recorded a net outflow of 2.95 billion dollars, while non-residents’ equity security transactions recorded net sales of 580 million dollars, as government domestic debt securities recorded net purchases of 444 million dollars.

Regarding the bond issues in international capital markets, general government a repayment of 2.75 billion dollars, while banks and other sectors borrowed 553 million dollars and 107 million dollars on net basis, respectively.