Türkiye’s June Current Account Deficit Exceeds Forecast at $2.01B

The Central Bank of the Republic of Türkiye (CBRT) announced that the current account posted a $2.006 billion deficit in June 2025, surpassing market expectations of a $1.45 billion deficit according to the ForInvest News survey.

Excluding gold and energy, the current account recorded a $2.579 billion surplus. The balance of payments–defined foreign trade deficit stood at $6.476 billion for the month.

On an annualized basis, June’s current account deficit reached $18.9 billion, while the foreign trade deficit widened to $63.3 billion. In the same period, the services balance posted a $62.1 billion surplus, whereas primary income and secondary income balances showed deficits of $17.6 billion and $0.1 billion, respectively.

Net inflows from services amounted to $5.989 billion in June, with transportation services generating $1.875 billion and travel revenues contributing $5.015 billion.

In terms of financing the annualized deficit, net foreign direct investment (FDI) added $4.8 billion, loans contributed $21.1 billion, and trade credits added $4.5 billion. However, net portfolio investments reduced financing by $4 billion, and net currency and deposits saw a negative impact of $12.3 billion. The CBRT’s foreign currency reserves declined by $20.3 billion on an annualized basis.

For June specifically, net inflows from direct investments reached $616 million. Foreign investors increased their direct investments in Türkiye by $1.566 billion, while domestic investors expanded their foreign direct investments by $950 million.

In real estate investments, Turkish residents purchased $214 million worth of property abroad, while foreign investors acquired $133 million worth of property in Türkiye.

Portfolio investments saw $1.049 billion in net inflows, with foreign investors purchasing $641 million in Turkish equities and $114 million in government debt securities (DİBS). In foreign bond issuances, non-residents bought $743 million in bank bonds, while selling $179 million from general government issues and $37 million from other sectors.

Foreign loan usage included $2.098 billion by banks, $445 million by other sectors, and a $36 million repayment by the general government. Under other investments, foreign banks’ deposits in Türkiye recorded a net increase of $494 million, driven by a $181 million decline in Turkish lira deposits and a $675 million rise in foreign currency deposits.

Official reserves fell by $4.05 billion in June.