According to the balance of payments data published by the Central Bank of the Republic of Turkey (CBRT) the current account balance recorded a deficit of 5 billion 466 million dollars in July. As the current account deficit was above market expectations, the acceleration in gold imports attracted attention in the details.
After the data, Goldman Sachs increased its 2023 current account deficit forecast for Turkey to 43 billion dollars. In the evaluation of the institution, attention was drawn to the negative impact of gold imports on the current account balance.
Goldman Sachs increased its 2023 current account deficit forecast for Turkey from 38 billion dollars to 43 billion dollars. In the report of the institution on the subject, it was stated that the sharp increase in imports of basic goods as well as – although more limited – gold imports were largely responsible for the deterioration of the balance of payments in Turkey since June.
However, core surplus, excluding gold and energy also, declined in July, suggesting domestic demand was still proceeding too swiftly.
Turkish economists, too, have raised their current account deficit projections, with $50 bn being the new top forecast.
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