TRNC Central Bank Releases Q4 2024 Economic Bulletin

The Central Bank of the TRNC has published its economic bulletin for the fourth quarter of 2024, highlighting key financial indicators. By the end of December, total banking sector assets had grown by 9.04%, reaching 329.5 billion Turkish lira.

Despite continued growth in the banking sector, the budget deficit widened to 9.6 billion Turkish lira. While foreign currency deposits increased, annual inflation rates showed a decline.

For the 2024 fiscal year, budget revenues totaled 75.6 billion Turkish lira, while expenditures reached 85.2 billion Turkish lira. The budget deficit, which stood at just 263 million Turkish lira in 2023, surged to 9.6 billion Turkish lira in 2024.

The share of domestic revenues—excluding Turkish financial aid and loans—in covering budget expenditures was 74.1%.

Meanwhile, the proportion of Turkish aid and loans, a major source of funding for budget deficit reduction, increased from 15.9% in 2023 to 19.7% in 2024.

Banking Sector Performance

As of December 2024:

• Gross loans in the banking sector stood at 130.95 billion Turkish lira
• Total deposits amounted to 256.35 billion Turkish lira

In Q4 2024, gross loans made up the largest share of total sector assets at 39.74%, followed by cash and cash equivalents at 34.98%.

Among different loan types,

• Business loans ranked first, totaling 88.87 billion Turkish lira
• Consumer loans came second at 22.04 billion Turkish lira

The banking sector’s equity capital saw a 102.15% increase year-on-year, reaching 34.0 billion Turkish lira.

Inflation Trends in Q4 2024

In the fourth quarter of 2024, monthly inflation rates were recorded as:

• October – 3.22%
• November – 0.78%
• December – 1.10%

Compared to the same months in 2023, annual inflation rates stood at:

• October – 65.65%
• November – 59.88%
• December – 53.29%

Highest Price Increases in December 2024

The categories with the highest annual price increases in December 2024 were:

• Education – 99.32%
• Miscellaneous goods and services – 81.36%
• Clothing and footwear – 76.79%
• Healthcare products – 73.13%

Meanwhile, the transportation sector recorded the smallest annual price increase, at 24.84%.