Turkey's May 2026 Current‑Account Deficit Hits $37.3 bn, Officials Call It Sustainable

The Central Bank of the Republic of Turkey (TCMB) reported that in May 2026 the current‑account balance showed a $1.459 billion deficit, while the core current‑account surplus (excluding gold and energy) was $3.626 billion. The trade balance recorded a $4.340 billion deficit and the services balance posted a $62.5 billion surplus. Primary‑income and secondary‑income accounts showed deficits of $24.1 billion and $1.3 billion respectively. Annualised, the current‑account deficit reached about $37.3 billion. Net foreign‑exchange reserves fell by $32.3 billion, and financing relied heavily on foreign‑currency credit amounting to $46.7 billion. Direct investment saw a net outflow of $455 million, and portfolio investments a net outflow of $3.069 billion.

Finance Minister Mehmet Şimşek said the deficit remains “at sustainable levels, showing the economy’s resilience,” while Trade Minister Ömer Bolat noted that the deficit fell to its lowest level in seven months at $1.5 billion. Goldman Sachs, in its research note, highlighted the May improvement – the deficit narrowed from $5.6 billion to $1.5 billion – but warned that “no major change in the current‑account outlook is expected” as trade‑deficit pressures may re‑emerge in June. Analysts also cited risks from rising energy prices and geopolitical developments in the Middle East as potential threats to the balance.

Overall, officials view the current‑account situation as manageable despite external shocks, with external financing needs below long‑term averages and credit growth slowing.