The current account deficit was $48.8 billion in 2022

The current account deficit increased $2,070 million in December 2022 compared to the same month of the previous year and amounted to $5,910 million.

The Central Bank of the Republic of Turkey (CBRT) published balance of payments statistics for December. In December, the current account registered a deficit of 5 thousand 910 million dollars. The current account, excluding gold and energy, showed a surplus of 3 thousand 525 million dollars.

The foreign trade deficit defined in the balance of payments amounted to 8 thousand 89 million dollars. Income from the balance of services was 2 thousand 498 million dollars. Under this category, the net income derived from the travel category amounted to 1 billion 468 million dollars.

AT THE TOP OF 9 YEARS

As a result, the current account deficit in the January-December period was 48.769 billion dollars, while the current account without gold and energy showed a surplus of 50.793 billion dollars in the same period. Thus, the annual current account deficit reached its 9-year peak in 2022.

Net direct investment inflows were recorded at $374 million. Portfolio investments registered a net inflow of US$ 828 million.

When analyzing by sub-items, it can be seen that non-residents made a net purchase of $16 million in the domestic public debt securities market and a net sale of $580 million in the stock market.

The effective and deposit assets of national banks in their foreign correspondents decreased by USD 4 thousand 109 million. Domestic deposits from foreign banks registered a net decrease of $320 million in total, with a net decrease of $351 million in foreign currency and a net increase of $31 million in Turkish lira.

This month there was a net increase of 2 thousand 434 million dollars in official reserves.

NET DEFECTS OF $24.2 BILLION IN 2022

As part of the end-of-year studies carried out in line with the “Review Policy”, since 2018 various updates have been made to the Balance of Payments Statistics, particularly the balance of primary income, direct investments and other investment items .

. While some of the updates only caused classification changes in the balance of payments table, some of them affected the “Current Account” and “Financial Account” items, and therefore the “Net Errors and Omissions” item.

As a result of the updates, Net Errors and Omissions reached $235 million in 2018, $98 million in 2019, $58 million in 2020, and $194 million in 2021.

Net of errors and omissions in 2022 was $24.2 billion.

WHAT IS NETWORK ERROR DEFICIENCY?

The element in which errors and deficiencies in the compilation of balance of payments data showing a country’s economic relations with the outside world are shown in the balance of payments table is called net errors and omissions.

For the ‘net errors and omissions’ item in CBRT texts, “Obtaining data from different sources creates differences in assessment, measurement and recording time; The resulting differences are reflected in the Net Errors and Omissions (NHN) element as ‘residuals’. This item is obtained by subtracting the current account and the capital account from the financial account.