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Turkey's More Balanced Growth Gets Little Credit From Markets

  • Investor reaction muted as current-account deficit disappears
  • Markets haven't priced the improvement yet, BGC's Altug says

A third month of near-zero deficits, combined with higher-than-expected growth, has vindicated Turkey’s Central Bank Governor Erdem Basci and could give investors a cause for optimism after a tough year.

Data released on Thursday showed Turkey’s monthly current-account deficit -- the broadest measure of the difference between goods and services it exports and imports -- fell to $133 million in October, 95 percent lower than a year earlier and following surpluses in August and September. Basci said concerns about the shortfall, which the government forecasts will fall to 5.2 percent of gross domestic product this year, are a thing of the past.