Turkey: CA balance expected to be in surplus at $1.9bn - TDS

Analysts at TD Securities suggest that Turkey’s September CA balance is expected to be in surplus at $1.9bn after a $4.6bn deficit in September of last year.

Key Quotes

“The consensus expectation implies that in the 12m to September the CA deficit was $44.8bn down from $51.1bn in the 12m to August.”

“The CA deficit is on a clear narrowing trend, albeit from very wide levels, as the economy is slowing down fast. While this is ultimately positive and a necessary part of the rebalancing process, we think the market will increasingly switch its focus to the negative impact of the slowdown on corporate balance sheets, which have been already hit by the TRY sell-off.”