New forecast for Turkey from major British bank: Current account deficit estimate reduced by 5 billion dollars

World-renowned financial giant Barclays has updated its current account deficit forecast for Turkey for 2024.

According to the report in CNBC-e, the UK-based bank's report lowered Turkey's 2024 current account deficit forecast by 5 billion dollars to 15 billion dollars, which corresponds to 1.2 percent of GDP. The current account deficit for 2023 had been set at 45 billion dollars, or 4.1 percent of GDP. This improvement was attributed to better performance in the core goods balance and gold balance.

TURKEY'S CURRENT ACCOUNT SURPLUS 'SLIGHTLY ABOVE EXPECTATIONS'

In the report signed by Ercan Ergüzel of Barclays, it was noted that Turkey's current account surplus in June 2024 was 0.4 billion dollars, coming in slightly above expectations. However, this figure remained below the 0.8 billion dollar surplus recorded in June 2023. Barclays stated that it had observed a gradual improvement in the core goods balance in the 12-month period from December 2023 to May 2024, but that this trend reversed in June.

The report also noted that an increase of approximately 30 billion dollars is expected in Turkey's foreign exchange reserves in the second half of 2024.

News Source: 12punto