Turkey's current account deficit falls

ANKARA - Turkey's current account deficit fell to $703 million in July from the previous month's $1.343 billion, the central bank said on Thursday, slightly above a median forecast of $700 million in a Reuters poll.

By (Reuters)

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Published: Sun 5 Sep 2004, 9:09 AM

Last updated: Thu 2 Apr 2015, 12:50 PM

The current account deficit for the first seven months was $10.025 billion, 88.2 per cent above the $5.324 billion in the same period last year.

The government full-year deficit target is $10.8 billion, revised from an earlier $7.6 billion.

The widening current account deficit has unsettled markets, but Economy Minister Ali Babacan said on Tuesday that worries about the deficit was exaggerated.

Babacan said a higher-than-projected current account deficit went hand in hand with an overall improvement in the Turkish economy, and did not threaten stability.

The government said before it was taking revenue-boosting measures to help curb the deficit, and hinted tax on consumer loans might be raised to curb domestic demand.

Strong demand for consumer goods, boosted by favourable credit conditions, has contributed to a surge in imports and a growing trade imbalance.

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