Turkish Treasury and Finance Minister Mehmet Şimşek announced that Türkiye’s current account deficit is projected to reach approximately 1.5% of GDP by the end of the year, maintaining sustainable levels despite increased production.

In a statement on X, Şimşek highlighted positive developments in macroeconomic data, pointing to robust growth in the second quarter driven by strong performances in industry, construction, and services sectors.

Şimşek noted that industrial production has been on an upward trajectory for three consecutive quarters, achieving a 7.3% annual growth rate in the second quarter. “In addition to this outlook in industry, the positive trend in construction and services indicates that annual growth strengthened in the second quarter,” he stated.

The minister reported that the current account deficit stood at $18.9 billion in June, equivalent to roughly 1.3% of GDP for the second quarter. He attributed the sustainable deficit levels to strong export performance, robust tourism revenues, and a favorable euro-dollar exchange rate. “We anticipate that improving domestic financial conditions, coupled with declining global uncertainties and disinflation, will contribute to economic activity in the coming period,” Şimşek added.

Looking ahead, the minister expressed confidence that the current account deficit-to-GDP ratio would see a modest increase but remain manageable at around 1.5% by the end of 2025. The positive outlook underscores Türkiye’s efforts to balance economic growth with financial stability amid evolving global and domestic conditions. (ILKHA)