Türkiye Posts $684M Current Account Deficit in May, Beats Expectations

In May 2025, Türkiye recorded a current account deficit of $684 million, outperforming analyst forecasts, which had predicted an $825 million shortfall, according to the ForInvest Haber survey.

The Central Bank of the Republic of Türkiye (CBRT) revealed that excluding gold and energy, the current account posted a surplus of $4.068 billion. Meanwhile, the balance of payments-defined foreign trade deficit stood at $4.804 billion.

The CBRT noted that annualized figures show a current account deficit of around $16 billion as of May, while the trade deficit was measured at $61 billion. In contrast, services posted a $62.2 billion surplus, while the primary and secondary income balances posted deficits of $17.2 billion and $68 million, respectively.

Within the services balance, net inflows totaled $5.635 billion, driven by transport services ($1.872 billion) and tourism-related travel income ($4.368 billion).

When examining how Türkiye financed its 12-month rolling current account gap, the report highlighted:

• Direct investments contributed $4.6 billion

• Loans added $25.1 billion

• Trade credits accounted for $3.4 billion
  Meanwhile:

• Portfolio investments had a net negative impact of $3.8 billion

• Cash and deposits detracted $14.5 billion

• CBRT’s net foreign exchange reserves fell by $15 billion

In May alone, net inflows from direct investments totaled $702 million. Foreigners boosted their direct investments in Türkiye by $1.377 billion, while Turkish residents invested $675 million abroad. Regarding real estate, Turkish investors acquired $238 million worth of foreign properties, and foreign investors bought $171 million in Turkish real estate.

Portfolio inflows reached $2.498 billion, with foreign investors purchasing $396 million in equities and $2.576 billion in government bonds (DIBS). As for international bond issuance, foreign investors acquired $916 million in government bonds, $161 million in corporate bonds, but sold $238 million in bank securities.

Regarding loan utilization, the banking sector used $815 million, the general government $2 million, and other sectors $1.277 billion in net credit.

Under other investments, foreign banks increased their lira and foreign currency deposits in Türkiye by $2.305 billion and $156 million, respectively—totaling $2.461 billion in net inflows.

Lastly, Türkiye’s official reserves rose by $13.466 billion in May, indicating an improvement in external balance stability.