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Turkey posted highest deficit.

 

Turkish lira
Tur­key has pos­ted a record cur­rent account defi­cit, under­scor­ing the chal­lenge facing Pres­id­ent Recep Tayyip Erdoğan as voters’ dis­con­tent over his stew­ard­ship of the $800bn eco­nomy grows ahead of a gen­eral elec­tion in May. Erdoğan has vowed to tame Tur­key’s chronic defi­cit, a key vul­ner­ab­il­ity for the eco­nomy, by lift­ing exports with a weaker cur­rency. However, higher global energy costs worsened the defi­cit, which jumped 43 per cent year on year to $9.85bn in Janu­ary, the highest monthly level since the data was first col­lec­ted in 1984, accord­ing to Reu­ters. Eco­nom­ists had expec­ted a defi­cit of $10bn, a Reu­ters poll showed.

With exports fail­ing to keep up with imports, the trade defi­cit widened 38 per cent in Janu­ary to $14.24bn, hit­ting Tur­key’s bal­ance of pay­ments, which cov­ers the total value of goods and ser­vices that a coun­try imports and exports. These unex­plained inflows of cap­ital, which have vexed eco­nom­ists, fin­anced almost half the cur­rent account defi­cit last year. Should Tur­key’s inflows prove insuf­fi­cient to fin­ance the defi­cit, the lira would come under renewed pres­sure, Pic­coli said. «He needs until mid­May, or it becomes an issue for the cur­rency, the first chan­nel of trans­mis­sion in any crisis in Tur­key,» said Pic­coli.

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  1. Ed14 March 2023 at 09:45

    It will become an issue for the currency, no doubt about it. Erdogan didn't do a good job at all and should be replaced by the people. Let's not forget the sloppy job he did after the earthquakes plus allowing things to get this bad.

    ReplyDelete
    Replies
    1. Morgan14 March 2023 at 12:16

      The problem is that there's no certainty that who will come after Erdogan will do a better job. There's lots to be fixed in Turkey, many problems. Yes, the lira will go down considerably, there is no way around this.

      Delete

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