The current account deficit, which stood near the $40 billion mark in 2023, dropped sharply to $10.1 billion in 2024. As a share of GDP, the deficit fell from 3.5% to 0.8%, significantly outperforming the Medium-Term Program (MTP) target of 1.7%. Of the roughly $30 billion improvement from 2023 to 2024, the largest contribution came from a $14.1 billion increase in the core surplus (the current account balance excluding energy and gold). This was followed by a $12.1 billion narrowing in the gold deficit, while the decline in the energy deficit made a more modest contribution of $3.7 billion.
Thus, the core surplus rose from $38.5 billion in 2023 to $52.6 billion in 2024. Over the same period, the gold deficit narrowed from $25.7 billion to $13.6 billion, and the energy deficit declined from $52.7 billion to $49 billion.
On the financing side, the financial account recorded a total capital inflow of $24.4 billion in 2024. While this marked a notable decline compared to the $49.4 billion inflow in 2023, it was still well above the level of the current account deficit. However, due to a historically high outflow of $13.7 billion under the net errors and omissions item, total capital inflows translated into only a modest $0.6 billion increase in official reserves.
In summary, the financing side remained weak in 2024. The continued underperformance of foreign direct investment in recent years suggests that Türkiye has not fully capitalized on shifts in global supply chains.
EN
