Türkiye’s current account debt widens
Türkiye’s imports routinely run at double the dollar value of the county’s exports. In 2003, exports totalled $60 billion.
As the Turkish Lira has gained value over the last three months, so the import growth rate is predicted to exceed exports. The Lira has strengthened almost 15% against the US dollar and 4% against the Euro. Imports from Euro countries have picked up on an annual basis, while US imports have dropped around 2.5%. Analysts have revised their estimates downwards to TL1.62 million to the dollar, from TL1.85 million. But, as imports grow, the current account deficit will widen to $7.5 billion, some 3.3% of gross national product (GNP).
Overnight borrowing rates are a hefty 45% but the stronger Lira should help to lower inflation below the 20% (real rate) official target before the end of 2003. Parliament’s summer recess is expected to be cancelled to speed through legislation that will entitle Türkiye to another allocation of International Monetary Fund (IMF) loans.
