Assessment of the Current Account by Vice President Yılmaz

Evaluating the current account balance, Vice President Cevdet Yılmaz stated that the current surplus continues to strengthen economic and financial stability while contributing to the disinflation process. Yılmaz noted that from June to September 2024, the current account balance recorded a surplus of approximately 3 billion dollars, which he described as a positive macroeconomic development. He also mentioned that as of September, the annualized current account deficit had decreased to 9.7 billion dollars, indicating that this decline demonstrates the effectiveness of economic policies.

Yılmaz emphasized that in the first nine months of 2024, the improvement in the foreign trade deficit reached 30.9 billion dollars compared to the same period last year, and the surplus in the services balance increased by 3.2 billion dollars. These developments allowed for a reduction in external financing needs and an improvement in risk indicators alongside the enhancement of the current balance. He pointed out that the cost of external borrowing is decreasing, affirming that macroeconomic data confirms the success of economic policies.

"The current account deficit target is around 1% of national income by the end of the year" Continuing his statements, Yılmaz said that the positive results obtained from macroeconomic indicators demonstrate the effectiveness of the implemented economic program. He expressed the expectation that the rebalancing policies and reforms to be implemented under the Medium Term Program (MTP) would lead to a current account deficit of around 1% of national income by the end of the year. This rate presents a more optimistic picture compared to the target set at 1.7% in the MTP.

Yılmaz highlighted that the improvement in the current account balance has created a more robust economic structure for the Turkish economy by reducing its dependence on external financial resources. With the impact of economic reforms and rebalancing policies, it is anticipated that the current account deficit will be better than expected by the end of 2024. This is expected to strengthen economic stability and allow Turkey to reach its economic goals more rapidly.