Both tourism and exports continue to surge! Foreign exchange flows into the country are accelerating.

One Who Knows...

The economy remains stable. While the dollar and euro are trending sideways, demand for safe-haven gold continues. Whether gold, currently trading around 5,400 lira, will gain further value appears to be determined by trade wars. The Borsa Istanbul 100 Index is also showing a fluctuating trend. The stock market is largely driven by foreign investors. Buying is pushing the BIST 100 Index past the 11,000-point threshold, while selling is keeping it within the 10,000-point range. Undoubtedly, the inflow into the stock market is very valuable. Foreign investors made their mark on the BIST 100 Index last week. In the week ending October 31st, these investors purchased $ 242.8 million worth of stocks. Foreign investors also purchased $486.6 million worth of bonds. This demonstrates the rapid flow of capital into Turkey.

Undoubtedly, Türkiye, which is progressing in every field, is experiencing accelerating foreign currency inflows. Significant increases are being seen in tourism and export revenues. Tourism, in particular, is entering a golden age. The figures confirm this. Indeed, in just nine months of the year, 50 million foreign visitors were hosted, generating $50 billion in revenue. A 1.6 percent increase in visitor numbers and a 5.7 percent increase in revenue were observed. October was a productive month. It was inevitable that the November season would be even better. It was clear that December would be a strong effort. There are no obstacles to reaching the $64 billion target set for 2025. The expansion of tourism across all four seasons and 81 provinces has created this positive and promising picture. The government's successive steps have made Türkiye one of the world's leading countries in sustainable tourism and accommodation, as well as a leader in certification.

The country has made its name known worldwide with over 60 products, from trekking to rafting. Now, the focus is on strengthening resilience against external threats and dangers, attracting qualified tourists to seven regions, and diversifying its markets. In this context, promotional activities and product development have been prioritized. Now, let's turn to exports. Exports are breaking records one after another. Touring the country and going door-to-door has played a significant role in this. Indeed, last month saw a promising performance. Exports increased by 2.3 percent to $24 billion in October, marking the highest October export figure in history. Exports for the last 12 months reached $270.2 billion, thus surpassing the $270 billion threshold.

Exports increased by 3.9 percent to $224.6 billion in the first 10 months of the year. Increases were recorded in merchandise exports in eight of the 10 months. In the first 10 months, merchandise exports increased by 3.9 percent, a net increase of $8.4 billion.

With the contribution of tourism and exports, the current account deficit is turning into a surplus. A $1 billion surplus is expected in September and $500 million in October. The current account deficit is projected to reach $21.5 billion in the first 10 months of the year. Gidişat reports, "The current account deficit's share of national income was 3.6 percent in 2023. It was 0.8 percent in 2024. This share will be 1.3 percent in the first half of 2025. According to Central Bank data, our current account deficit is $18.3 billion as of the first eight months. We will also have a current account surplus in September and October," and it appears Trade Minister Ömer Bolat will be proven right.

Economists' forecasts are no different from Bolat's. They indicate that the decline in the current account deficit will accelerate. According to economists, the deficit will remain at $21.125 billion by the end of 2025. A more balanced trend will follow in 2026. With this understanding, we will share the good news with our readers. Enjoy reading...

Adem Şahin \ Timeturk