According to the statement made by the CBRT, as of the third quarter of 2024, the ratio of the Turkish economy’s net financial position deficit to gross domestic product (GDP) decreased by 6 points compared to the previous period and stood at 23.3 percent.
Net financial transactions in sectors
In the statement made by the CBRT, “When the net financial transactions in the sectors are examined, the total economy, which was a net lender with 0.11% of GDP in the previous quarter, is a net borrower with 3.4% of GDP in this quarter.” It was said.
Additionally, the statement said, “When the sectoral financial balance sheets of the domestic economy are examined, it is observed that the total economy is in a financial debtor position, households and the rest of the world are in a creditor position from other domestic sectors, and non-financial institutions and the general government are in a debtor position to other sectors. Financial institutions play a financial intermediary role.” “It has created a net financial position close to balance as required.”
Household financial assets
It was stated that among household financial assets, money and deposit items stand out with a share of approximately 60 percent, and almost all of the liabilities consist of loans, and continued as follows:
“Within the financial assets and liabilities of non-financial institutions, other receivables and other payables items arising from the commercial transactions of companies with each other were the determining factors, with a share of 64 percent and 49 percent, respectively.
When the debt ratios of all sectors are compared with other countries, it is seen that the total debt of the sectors located in Turkey is at a low level. “The ratio of total debt in the form of loans and debt securities to GDP decreased by 92 percent in the third quarter of 2024 compared to the previous quarter.”
Source: www.dunya.com
