In the broadest terms, Balance of Payments is a statistical report prepared to show the systematic records of economic transactions between residents of a country with residents of another country (non-residents) over a certain period of time. The international standards regarding the compilation of the balance of payments statistics are defined in the Balance of Payments and International Investment Position Manual prepared by the International Monetary Fund (IMF) to provide guidance to member countries. These standards ensure comparability of the balance of payments statistics among countries.
Turkish Balance of Payments statistics are issued on a monthly basis and compiled based on the 6th edition of the IMF's Balance of Payments and International Investment Position Manual released in 2009.
Balance of Payments Developments - December 2017
• The current account deficit recorded USD 7,700 million indicating an increase of USD 3,332 million compared to December of the previous year, bringing the 12-month rolling deficit to USD 47,100 million.
• This development in the current account is mainly attributable to USD 3,163 million increase in the goods deficit recording net outflow of USD 7,426 million, as well as USD 231 million increase in primary income deficit to USD 1,189 million.
• Travel item under services recorded a net inflow of USD 780 million, increasing by USD 80 million compared to the same month of the previous year.
• Investment income under primary income item indicated a net outflow of USD 1,096 million increasing by USD 208 million in comparison to the same period the previous year.
• Secondary income recorded net inflow of USD 240 million increasing by USD 17 million in comparison to the same month of the previous year.
• Direct investment recorded a net inflow USD 490 million decreasing by USD 1,083 million compared to the same month of the previous year.
• Portfolio investment recorded a net inflow of USD 344 million. As regards to sub-items through liabilities, non-residents’ equity securities transactions recorded net purchases of USD 142 million, while government domestic debt securities transactions recorded net sales of USD 266 million.
• Regarding the bond issues in international capital markets, banks realized net borrowing of USD 305 million, as General Government realized a new bond issue of USD 534 million.
• Other investment recorded a net outflow of USD 1,999 million.
• Under other investment, banks’ currency and deposits within their foreign correspondent banks increased by USD 3,765 million, while nonresident banks’ deposits held within domestic banks decreased by USD 606 million on net basis.
• Regarding the loans provided from abroad, banks and other sectors realized net borrowings of USD 1,564 million and USD 647 million respectively, while General Government indicated net repayment of USD 605 million.
• Official reserves recorded net outflow of USD 8,636 million.
• Based on the year-end studies in accordance with the “Revision Policy”, starting from 2012, a number of revisions mainly in currency and deposits, loans, direct investment and services items have been made on the balance of payments statistics. While some of these revisions are only classification changes, others have an impact on the "Current Account" and the "Financial Account", and hence on the "Net Errors and Omissions" item.
• As a result of abovementined revisions, the net errors and omissions item has been revised downwards by USD 897 million in 2012, USD 536 million in 2013, USD 921 million in 2014, USD 442 million in 2015, and USD 2,526 million in January-November 2017, in contrast to USD 44 million upward revision in 2016, bringing the cumulative downward revision to USD 5.3 billion for the entire period.