Turkey's current account deficit expected to top $40 billion by end of 2022

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Turkey's current account deficit expected to top $40 billion by end of 2022

ISTANBUL, Turkey: Turkey's current accounts are expected to have a deficit of $3.4 billion in June and a deficit of more than $40 billion by the end of the year, according to a Reuters survey.

The median estimate for the current account deficit in June was $3.4 billion, with forecasts ranging from $2.35 billion to $5.2 billion.

The trade deficit, a major component of the current account balance, soared by 184.5 percent to $8.17 billion in June, due to Turkey's hefty energy import bill.

The Turkish deficit is projected to reach $40.15 billion as a whole for 2022, with the range of forecasts between $35 billion and $51 billion.

Economists have been revising their forecasts for the 2022 deficit due to surging energy prices. The median forecast was $29 billion five months ago and $40.30 billion in last month's survey.

The government says Turkey's chronic current account deficit, which stood at $14.9 billion last year, will be turned to a surplus under President Tayyip Erdogan's economic plan, which prioritizes growth, exports and employment with low interest rates.

Turkish exporters are revising down year-end targets, possibly hurting the government's plans as new orders drop due to signs of a global slowdown and inflationary pressures.