New Medium-Term Program for the 2027-2029 Period Announced
Basic indicators have been revised with the new Medium-Term Program outlining the three-year roadmap of the Turkish economy.
The Medium-Term Program for the 2027-2029 period, prepared by the Presidency's Strategy and Budget Directorate and the Ministry of Treasury and Finance, has been announced to the public, and the basic indicators of the previous program have been completely updated.
Inflation and Revised Targets
The inflation target, which was set at 16 percent for the end of 2026 in the previous Medium-Term Program, was raised by 12.4 percentage points to 28.4 percent in the new program.
Within the scope of the new program, inflation is planned to be 21 percent in 2027, 15.5 percent in 2028, and 9 percent in 2029, while it is projected that single-digit figures can only be reached in 2029.
Growth and Unemployment Projections
Growth forecasts were revised downwards, setting the rate at 3.5 percent for 2026, while targeting 4.2 percent growth in 2027, 4.6 percent in 2028, and 5 percent in 2029.
Unemployment rates are expected to be 8.8 percent in 2026, 8 percent in 2027, 7.8 percent in 2028, and 7.6 percent in 2029.
Per Capita Income
The new Medium-Term Program also outlined targets projecting an increase in per capita national income by years.
Accordingly, per capita income is targeted to be 20,523 dollars in 2026, 22,285 dollars in 2027, 23,409 dollars in 2028, and 24,842 dollars in 2029.
Tax Revenue Increase Expectation
While the new program revealed that there will be a significant increase in tax revenues, the state is projected to generate 14.5 trillion TL in tax revenue by the end of 2026.
The government's tax revenues are expected to be 19.9 trillion TL in 2027, 23.9 trillion TL in 2028, and 27.7 trillion TL in 2029, with a total of 71.5 trillion TL in taxes planned to be collected in the 2027-2029 period alone.
Privatization Revenues and US Dollar Exchange Rate
Targets to generate a total of 596.8 billion TL in revenues from privatizations in the 2027-2029 period were included in the program.
The US dollar exchange rate expectations in the program were projected as 46.87 TL for the end of 2026, 56.05 TL for 2027, 63.69 TL for 2028, and 69.83 TL for the end of 2029.