Current account balance came in line with the expectations

• Current account balance deficit was realized at US$ 3,7 billion in March (2015 March: US$ 4,8 billion).
• With this outcome, the current account deficit in 1Q of 2016 reached US$ 7,9 billion (1Q of 2015: US$ 10,5)
• After March data, 12 month rolling deficit came below US$ 30 billion.
• Lower oil prices continued to support the improvement in the current account balance.
• On the other hand, decrease in the tourism revenues subdued balance on service. Russian sanctions have had negative effects on Turkish tourism sector.
• Foreign direct investments are keeping its sluggish performance in March as well.
• But, in line with capital inflows to EM, portfolio inflows gained momentum in March.
• CBT's official reserves recorded a net increase of US$ 1,5 billion in March and net error and omissions was realized at US$ 1,1 billion.
• Tourism revenues may reverse the downward trend in the current account balance in coming months.
• Yet, demand from Euro Area can support the improvement of 12 months rolling deficit in coming months as well.