Bolat: Strong Improvement in Current Account Balance Continues to Present a Positive Outlook for the Economy’s Future

Forex - Trade Minister Ömer Bolat stated that the strong improvement in the current account balance continues to paint a positive picture for the future of the economy by reinforcing macroeconomic stability.

In a statement via X, Bolat said: "The strong improvement in the current account balance continues to present a positive outlook for the future of our economy by strengthening macroeconomic stability. As a result of the improvements we have achieved in current transactions, our risk premium continues to decrease, and the confidence environment in the economy is strengthening. The Government's resolutely implemented Economic Program is yielding positive results regarding exports, production, investment, employment, and sustainable current account balance. In October 2024, the current account balance posted a surplus of 1.9 billion dollars. For the first time in the last five years, the current account has recorded surpluses for five consecutive months. In the first ten months of 2024, the current account deficit decreased by 32.8 billion dollars, dropping to 3.3 billion dollars. The annualized current account deficit, which occurred at 55.6 billion dollars in May 2023, has decreased by 47.9 billion dollars in the following months, falling to 7.7 billion dollars as of October 2024. Excluding gold and energy, the current account balance has maintained its strong performance with a surplus of 7.2 billion dollars. Our annualized services exports reached a record of 112.5 billion dollars as of October 2024. The increase in exports and the decrease in imports have contributed to financial and macroeconomic stability, strengthening economic balances and providing a positive and clear contribution to growth. Additionally, it has supported a stable and resilient outlook in labor markets. In October 2024, the current account balance recorded a surplus of 1.9 billion dollars. The current account deficit for the January-October 2024 period has decreased by 91% compared to the same period of the previous year, recording at 3.3 billion dollars. Thus, the peak current account deficit of 55.6 billion dollars recorded in May 2023 has decreased by 47.9 billion dollars in the following months, falling to 7.7 billion dollars as of October 2024. In October 2024, our annualized exports rose by 3.0% year-on-year to 262.2 billion dollars. Meanwhile, annualized imports fell by 7.4% to 340.1 billion dollars. The annualized foreign trade deficit decreased by 30.9% to 77.9 billion dollars, while the ratio of exports to cover imports rose by 7.8 percentage points to 77.1%. In May 2023, the annual foreign trade deficit was 122.2 billion dollars, decreasing by 44.3 billion dollars in 17 months. The decline in the foreign trade deficit has been accompanied by an increase in our services exports. Service revenues hit a record of 112.5 billion dollars on an annualized basis in October. Travel revenues within services exports increased to 54.1 billion dollars. With the implemented supports to boost goods and services exports and measures to reduce imports, a significant decline has been recorded in the current account deficit. The positive developments in the foreign trade balance are making economic growth more balanced, and a resilient trend is observed in labor markets. The number of employed individuals reached an all-time high of 32 million 970 thousand in October 2024, increasing by 156 thousand compared to the previous month, while the employment rate rose by 0.2 points to 49.9%, marking a record level. As the Ministry of Trade, we are determined to continue working to further advance this performance and enhance the successes of our economy on the path of sustainable growth.