Turkısh Cad Swells 22.4 Pct İn5 Months

Todays-Zaman 12.07.2013 281
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Turkish CAD swells 22.4 pct in 5 months Turkey's current account deficit (CAD) surged by 22.4 percent to reach $31.9 billion in the first five months of the year, govemment d ata revealed on Thursday. The Turkish Statistics İnstitute (TurkStat) released its foreign trade balances figures on Thursday, showing that the CAD in May also increased by 41.7 percent över the same month in 2012. Ma/s CAD was at $7.8 billion, above an earlier market poll expeetation of $6.8 billion. Evaluating the figures in a written statement on Thursday, Economy Minister Zafer Çağlayan cited an increase in gold imports as the factor that brought the CAD up. "Turkey imported gold worth $4.8 billion in the months of April and May this year. This was due to an increase in domestic demand for the valuable metal following a dedine in price in global markets. ... We expect the trend of the surge in gold imports be temporary," the minister explained. The govemment projects the year-end CAD to be around $60.7 billion; this figüre was $48.8 billion in 2012. According to Çağlayan, the CAD should make it below the projected figüre for the year-end. A high foreign trade deficit remains the majör factor responsible for Turkey's CAD. Turkey's foreign trade deficit arises predominantly from an import dependency on energy and intemıediate goods, especially oil and rıatural gas. In addition to metal and energy imports, the Turkish foreign trade is vulnerable to Jluctuations in foreign exchange. CONTINUED ON MGE 07