By Joshua Kirby
Turkey's current-account deficit again grew wider in March as energy imports stayed high and rampant inflation drove up goods prices.
The country's balance of payments, a measure of the gap between inflows into and outflows from the country, showed a deficit of $4.54 billion in March, widening from $3.64 billion in February, central-bank figures showed Monday. It continues a trend of steadily wider deficits beginning from the end of last year, after a tourism boom briefly helped Turkey record rare surpluses in its current account.
Energy imports continue to drag the account, while the trade deficit in goods also widened in March.
Turkey, which earlier this month said it would cut off trade with Israel until the country allowed an "uninterrupted and sufficient flow" of aid into Gaza, is vulnerable to volatility in energy prices that risk pushing up the country's net imports, central-bank chief Fatih Karahan said at a forum in Washington D.C. last month. The bank has been forced to lift interest rates to the dizzying heights of 50% in an effort to bring inflation under control, and Karahan has refused to rule out further hikes ahead.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
05-13-24 0331ET
