The 10th issue of TEPAV Macroeconomic Imbalance Indicators Bulletin has been published. In the fourth quarter of 2022, the current account deficit reached the highest level of the last 5 years, and the financial indicators indicated deepening fragilities.

Following the publication of the source official statistics for the fourth quarter of 2022, the MDG Scoreboard has been updated.

According to the updated indicators, decreases in unit labor costs accelerated in this quarter, while the real effective exchange rate maintained its high negative values. On the other hand, despite the increase in Turkey's share in world exports, the current account deficit reached the highest level of the last 5 years due to the increase in import expenditures far above export revenues. In addition, the growing financing need had a negative impact on the net international investment position.

On the other hand, the acceleration of private sector loans and the realization of financial liabilities and housing price index indicators that are well above the threshold values pose significant vulnerabilities towards financial stability. Employment indicators improved in this quarter, all indicators were within threshold values for the first time after the epidemic. Despite the positive developments observed in employment indicators in 2022, the fact that the general unemployment rate remains in double digits and that the youth unemployment rate is at a level close to twice the headline unemployment rate necessitates the continuation of the improvement in order to ensure the establishment of strong macroeconomic balances.

You may read bulletin from here.