Bolat: Positive Developments in Trade Balance Strengthen Macroeconomic Stability Alongside Improvement in Current Account

Foreks - Minister of Trade Ömer Bolat stated that the positive developments in the foreign trade balance have made economic growth more balanced, saying, "With the improvement in the current account balance, macroeconomic stability is also being strengthened. As the Ministry of Trade, we will continue our work determinedly in close cooperation with our producers and exporters with the aim of increasing our share in global goods and services exports."

Bolat, commenting on X, stated the following: "In September 2024, the Current Account recorded a surplus of 3.0 billion dollars. Thus, the Current Account has shown a surplus on a monthly basis for the last 4 months. This is the first time since the July-October 2021 period that there have been consecutive months of surplus for 4 months. In the first 9 months of 2024, the Current Account showed a deficit of 5.3 billion dollars, a decrease of 85.4%. Excluding gold and energy, the Current Account recorded a surplus of 7.7 billion dollars, maintaining its strong trend. Our annualized service exports rose to 112.0 billion dollars, setting a new record.

The increase in exports and decrease in imports also support a balanced growth structure. With the continuation of the positive trend in goods and services trade, it is anticipated that the Current Account will also show a surplus in October. The strong improvement in the Current Account continues to provide a positive outlook for the future of our economy by reinforcing macroeconomic stability.

In September 2024, a surplus of 3.0 billion dollars was recorded in the Current Account. The current account deficit for January-September 2024 was recorded at 5.3 billion dollars, representing an 85.4% decrease compared to the same period of the previous year. Thus, the peak of the annualized current account deficit, which occurred in May 2023 at 55.6 billion dollars, has decreased to 9.7 billion dollars as of September 2024, down by 45.9 billion dollars in subsequent months.

In September 2024, our annualized exports reached 261.5 billion dollars, an increase of 3.4% year-on-year. Meanwhile, annualized imports decreased to 340.0 billion dollars, a decline of 7.3% for the same month. The annualized foreign trade deficit decreased by 31.1%, reaching 78.5 billion dollars, while the ratio of exports to cover imports increased by 8.0 percentage points to 76.9%.

In May 2023, the annual foreign trade deficit was 122 billion dollars, having decreased by 43.7 billion dollars over the course of 16 months. This decline in the foreign trade deficit is accompanied by an increase in our service exports. Service revenues reached a record high of 112.0 billion dollars on an annualized basis in September. Travel revenues included in services increased to 53.6 billion dollars. Significant reductions in the current account deficit have been achieved due to support aimed at increasing goods and services exports and measures implemented to decrease imports.

With the continuation of the positive trend in goods and services trade, it is anticipated that the Current Account will also show a surplus in October. The positive developments in the foreign trade balance are making economic growth more balanced while strengthening macroeconomic stability alongside the improvement in the Current Account. As the Ministry of Trade, we will continue our work determinedly in close cooperation with our producers and exporters, aiming to increase our share in global goods and services exports."