Financial Accounts Report 2024- I. Quarter

Summary

According to sectoral financial balance sheets, resident sectors’ total financial assets and liabilities at end-quarter amounted to TRY 91.1 trillion and TRY 99.6 trillion, respectively.  Below is a summary of developments pertaining to the first quarter of 2024:

• The ratio of the net financial position deficit of the Turkish economy to gross domestic product (GDP) increased by 2.6 points quarter-on-quarter to 27.7%.
• According to net financial transactions conducted by sectors, the total economy, which was a net borrower of 0.7% of GDP in the previous quarter, became a net borrower of 5.5% of GDP in the fourth quarter.
• An analysis of the domestic economy’s financial balance sheets by sectors reveals that the total economy was a financial borrower, households and the rest of the world were creditors, and non-financial corporations and the general government were debtors. Meanwhile, due to their financial intermediation activities, financial corporations generated a near-balanced net financial position.
• Among households' financial assets, currency and deposits stand out with a share of approximately 62%, and almost all liabilities are composed of loans.
• Financial assets and liabilities of non-financial corporations were driven by other accounts receivable and other accounts payable items, which are composed of corporates' commercial transactions with each other, with 69% and 51% shares, respectively.
• A cross-country comparison of indebtedness ratios for all sectors reveals that the total debt of resident sectors was low in Türkiye. In the first quarter of 2024, the ratio to GDP of total debt in the form of loans and debt securities was 103%, down from the previous quarter.