12̞MONTH ROLLING DEFICIT HITS USD 21.8BN

The 12-month rolling current account deficit (CAD) reached USD 21.8bn in February, according to the Central Bank. Thus, year-end CAD expectations have been raised to USD 35-40bn for 2022. The current account balance, which recorded a USD 7.1bn deficit and hit a 4-year high in January, posted a USD 5.15bn deficit in February, up by USD 2.71bn year-on-year. The surge stemmed from energy costs, which have increased following Russia’s invasion of Ukraine. Turkey is almost 100% dependent on imported energy resources. The country’s foreign trade deficit jumped 135.5% to USD 7.88bn in February year-over-year as energy imports reached USD 7.77bn. The net foreign direct investment totaled USD 4m, while net portfolio investment outflow amounted to USD 765m in February. Official reserves dropped by USD 2.22bn in the same period.