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UPDATE 1-Turkey posts surprise Aug current account surplus

Published 10/12/2009, 11:01 AM
Updated 10/12/2009, 11:03 AM

* August current-account surplus is $127 million

* Second month in a row Turkey posts a surplus

(Adds details, background)

ISTANBUL, Oct 12 (Reuters) - Turkey's current account posted a surprise surplus of $127 million in August, defying expectations in a Reuters poll of a $350 million deficit, Central Bank data showed on Monday.

August was the second month in a row the current account, the broadest measure of trade, produced a surplus.

The deficit in the first eight months of the year fell 81.2 percent to $6.574 billion, the bank said on its website.

The global financial crisis has slashed oil prices and consumer demand to reduce Turkey's trade deficit.

In the past, chronic current-account deficits have been Turkey's macroeconomic weak spot, as the country imported more than it produced for export.

In July, the current account stood at a surplus of $286 million.

However, in a sign of waning cash flows to Turkey, foreign direct investment fell 53.7 percent in the first eight months of the year to $5 billion, the central bank also said.

Turkey's trade deficit in the first eight months of the year fell 56.9 percent to $22.951 billion. (Editing by Toby Chopra)

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