Despite the depreciation in the exchange rate in the first quarter of 2022, the current account deficit increased and internal imbalances reached the highest level The 6th issue of TEPAV Macroeconomic Imbalance Indicators Bulletin has been published.

Following the publication of official statistics for the first quarter of 2022, the MIP Scoreboard has been updated. Indicators show that the current account deficit is on an increasing trend, despite the rapid and high depreciation of the Turkish lira and the historically low levels in unit labor costs. The initial data on the share of Turkey's export revenues in world exports show that the improvement trend that started in 2021 continues in the first quarter of 2022. However, the positive course in competitiveness indicators was not reflected in the current account balance. Most of the internal imbalance indicators reaching their highest value in the analysis period show that internal imbalances have been at their peaks since 2011. In the first quarter of 2022, the indicator for the total liabilities of the financial sector reached approximately 4 times the threshold value and the house price index reached approximately 5 times the threshold value. In this period, the deterioration in the employment outlook slowed down compared to the end of 2021. However, it is considered that unemployment continues to be a factor of macroeconomic imbalance due to having persistent high rates and/or indicators outside the threshold values.

You may read bulletin from here.