MILLIRE ENG2024

With the significant improvement in the current account balance Outlook compared to the previous year, the current account deficit/ GDP ratio fell below 1% in 2024. In 2024, Türkiye’s exports increased by 2.4% to reach USD 261.9 billion, while imports declined by 5% to USD 344 billion due to the decrease in energy prices and decline in gold imports. Thus, the foreign trade deficit narrowed by 22.7% in 2024, falling to USD 82.2 billion. The export-to-import coverage ratio improved from 70.6% in 2023 to 76.1% in 2024. In parallel with the narrowing of the foreign trade deficit and the positive outlook in tourism revenues throughout 2024, the current account deficit declined by 75% compared to 2023, falling to USD 10 billion. Excluding gold and energy, the current account posted a surplus of USD 52.7 billion during the same period. With the significant improvement in the current account balance Outlook compared to the previous year, the current account deficit/GDP ratio fell below 1% in 2024. In addition to the improvement in the current account balance, the relatively positive trend of portfolio investments and the preferences of domestic residents contributed to the CBRT’s foreign exchange reserves. As of the end of 2024, the CBRT’s gross international reserves rose to USD 155 billion, while net international reserves reached USD 63.6 billion. While strong reserves and a tight monetary stance helped increase investor confidence, significant decline was observed in the country’s CDS risk premiums. International credit rating agencies upgraded Türkiye’s credit rating. Source: TURKSTAT, CBRT, Republic of Türkiye Ministry of Treasury and Finance Economic Outlook Although the CBRT initiated a rate-cut cycle it emphasized its cautious stance and commitment to a tight monetary policy framework in light of persistent upside risks to inflation. 52 MİLLİ RE