Deficit increases despite weak oil

The current account balance gave a $4.923 million deficit in March, above the $3.6 billion expectation, due to the sharp decline in exports, less steep decline in imports, and the loss in tourism income. Although the decrease in crude oil prices eased energy imports, the impact of the coronavirus outbreak on exports and imports contributed to the deterioration in the current account balance. The 12-month current account

surplus decreased to $1.46 billion. In March, the total outflow of foreign investors reached $7.7 billion and the Central Bank reserves recorded a $16.59 billion net decrease.

The annual $3.55 billion increase in the foreign trade deficit was the key factor in the the current account balance, according to the Central Bank statement. The decrease in imports was slower compared to the steep decline in exports. This caused the foreign trade deficit to increase. This data is also driven by the $918 million decrease in the services inflow, recording a net inflow of $735 million, as well as the $197 million net outflows in secondary income compared to the $131 million net inflow in the same month of the previous year.

The gold and energy-excluded current account came in at a deficit of $1.16 million, compared to the $3.93 million surplus in the same month last year. The net inflow of the travel item under services decreased by $529 million to $514 million.

Portfolio investment recorded a net outflow of $5.5 million. Non-residents’ equity securities and government domestic debt securities net sales amounted to $1.06 million and $2.12 million, respectively. once again and underlined the importance of husbandry and agricultural investment.

AYSEL YUCEL