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ANALYSIS - Current account deficit has turned into a surplus because of the decreased trade deficit in shrinking economy.

The current account balance gave 1 billion 158 million dollar surplus in July, while the surplus in the last 12 months has reached the highest level of 17,5 years with 4 billion 445 million dollars. Due to declined imports caused totally by economic stagnation, foreign trade deficit has been influencial on that current surplus being reached the highest level since 2002 by a 2 billion 421 millon dollar decrease from 2 billion 524 million dollars with respect to previous year’s same month. Foreign trade deficit has decreased by 21.7 billion dollars compared to previous year as the currency crisis caused imports to decline and exports to inçline after being escalated especially in the second half of 2018. After the sharp fall in foreign trade deficit, current account deficit of the year in question decreased by 20.3 billion dollars. Current account deficit which had been 47.3 billion dollars in 2017 decreased to 27 billion dollars in 2018. The same situation continued in the first 7 months of 2019. In the first 7 months of last year, foreign trade deficit which had been 46 billion 808 million dollars became 18 billion 63 million dollars in the first seven months of 2019. Foreign trade deficit decreased by 28 billion 745 million dollars in the first 7 months. The main reason that current deficit being decreased is the decline in capital and in imports of intermediate goods following the decline in production which arouse from the decrease in demand among sectors such as automotive, domestic apliances due to economic stagnation… When the decrease in imports of oil and other energy and in purchasing power with the decrease in imports of consuming goods were also considered, a significant decline in our imports was recorded. In addition to that, incline in exports due to the rise in competitiveness which the weakened Turkish Lira created has caused foreign trade deficit to decrease more.

Hibya News Agency