Production rises as current deficit remains sustainable: Şimşek

ANKARA

Treasury and Finance Minister Mehmet Şimşek stated that production is increasing while the current account deficit stays at sustainable levels.

In a post on his X account evaluating the current account data, Şimşek said, "Production is increasing while the current deficit is at sustainable levels. Industrial production, which has been rising on a quarterly basis for three quarters, grew 7.3 percent annually in the second quarter. This outlook in industry, along with positive trends in construction and services, indicates stronger annual growth in the second quarter."

"We forecast the annual current deficit, which stood at $18.9 billion in June, at about 1.3 percent of GDP in the second quarter. Strong exports and tourism revenues, coupled with the rising euro/dollar parity, are supporting the current balance," he said.

"We anticipate that declining global uncertainties and disinflation, along with improving domestic financial conditions, will contribute to economic activity in the coming period," Şimşek said.

"We expect the current deficit's ratio to GDP to rise slightly but remain at a sustainable level of about 1.5 percent by year-end," he added.