ANKARA
Turkey's current account deficit stood at $3.196 billion in February -- a sharp widening from $2.002 billion in January, the Central Bank of the Republic of Turkey has said.
But the bank also said in a statement Friday the deficit narrowed by $146 million compared to the same month in the previous year.
The 12-month rolling deficit decreased to $42.822 million from $42.968 million.
Speaking in Ankara on Thursday, central bank governor Erdem Basci said he expected recent improvement in the country's current account balance to slow due to rising automotive imports.
But Basci forecast the current account deficit improvement to resume after March as a result of falling oil prices.
Ziraat Securities economist Bora Tamer Yilmaz said that the narrowing trend for the deficit would start again shortly. "We are seeing some volatility due to the gold trade and increased auto demand locally. That will not hurt the current account deficit substantially and probably the balance will resume its improving trend in the summer months."
Gold exports were a factor in the change, as net gold exports were $1.505 million, increasing by $932 million compared with the same month of the previous year.
Overall, Turkish exports declined by 13.4 percent to $11.229 billion in March, as the low value of the euro reduced the value of sales in Europe, Turkey's largest export market.
"Not just by falling energy prices, the general decline in commodity-complex as well as producer price deflation around the world is helping Turkey's import bill," Yildiz said.
The year-on-year decrease in the current account deficit is mainly attributable to a $346 million decrease in the foreign trade deficit, which stood at $3.143 million, and a $38 million increase in the services surplus, which reached $724 million.
Contrary to this, the improvement in the current account deficit was partially offset by a $238 million increase in the primary income deficit reaching $853 million.
