Trade Minister Bolat: Current Account Deficit May Narrow to $12-12.5 Billion in Second Quarter

Trade Minister Ömer Bolat stated that the current account deficit is expected to narrow to $12-12.5 billion in the second quarter, supported by the resilient performance of goods and services exports. According to data from the Central Bank of the Republic of Turkey (CBRT), the May current account deficit fell to $1.5 billion, the lowest level in seven months, while the annualized deficit stood at $37.3 billion. Energy import costs surged by 53.3% to $4.5 billion, contributing to the overall deficit. Despite geopolitical tensions driving up commodity and energy prices, the trade deficit improved by 9.1% in the second quarter, with goods exports rising 10.2%.

Energy and Commodity Price Volatility

Bolat highlighted that the 29.6% decline in the trade deficit in April-May reversed in May with a 15.6% drop, positively impacting the current account. However, rising geopolitical risks continue to fuel price volatility and upward pressure on the deficit through increased energy and commodity imports.

Sustainability of Exports and Strategic Focus

■Annual services exports rose 3.2% to $122.2 billion, with tourism revenues at $60.1 billion and transportation earnings at $42.7 billion.

■Total goods and services exports grew 3.1% to $395.7 billion.

■The ministry emphasized export incentives, trade diplomacy, and diversification strategies to strengthen sustainable external balance.

>This data underscores Turkey's efforts to reduce external debt burden and ease liquidity pressures, supported by stable export growth. However, energy price shocks remain a strategic risk to full current account stabilization. The ongoing tightening in SME lending further highlights the need for flexible financial mechanisms.