Turkish current account deficit reaches 34-month low

Turkey's current account deficit (CAD) shrank to a 34-month low of $36 billion in the latest central bank report on trade, suggesting that a slowdown in the Turkish economy is helping the country to reduce trade imbalances. The CAD shrank to the tune of $18.1 billion to stand at $36 billion in the January to August period covered by the report, which Turkish Economy Minister Zafer Caglayan hailed yesterday as a sign of strengthened Turkish exports which have diversified amid Europe's deepening economic crisis. A reduction in the goods side of Turkey's foreign trade deficit during the eight-month period was chiefly responsible for the CAD reduction, with the foreign trade deficit narrowing by $16.1 billion to $45.2 billion. Turkish revenues from the service side of the trade balance -- which includes the country's burgeoning tourism sector -- meanwhile increased by $1.47 billion to $13 billion, with expenses dropping by $718 million to $4.85 billion over the eight-month period.