New Medium-Term Program for the 2027-2029 Period Published in the Official Gazette
Turkey's new Medium-Term Program, outlining the country's economic roadmap for the next three years, has entered into force.
The new Medium-Term Program, covering the fundamental targets and policies of the Turkish economy for the 2027-2029 period, has been published in the Official Gazette and entered into force. Within the scope of the program, new targets have been set across a wide range from growth to inflation, employment to social housing projects.
Economic Growth and Production Targets
The growth rate, which is expected to be 3.3 percent in 2026, is projected to rise to 4.2 percent in 2027, 4.6 percent in 2028, and 5 percent in 2029.
In addition to the green and digital transformation, it is planned to increase efficiency in energy and raw materials through artificial intelligence-supported autonomous production systems.
Single-Digit Period in Inflation
Inflation forecasts were announced as 28.4 percent for 2026, 21 percent for 2027, 13.5 percent for 2028, and 9 percent for 2029.
It is aimed to reduce inflation to single digits by the end of the program period.
Employment and Unemployment Rates
The unemployment rate, expected to be 8.1 percent in 2026, is planned to be pulled down to 7.6 percent by the year 2029.
It is targeted to provide additional employment to approximately 2.1 million people throughout the new program period.
Social Housing and Earthquake Investments
It is planned to increase social housing investments by 150 percent in order to make it easier for low- and middle-income segments to own homes.
It is aimed to spread Istanbul-focused rental social housing projects nationwide and heal the wounds of the earthquakes.
Sectoral Supports and Credit Opportunities
It is targeted to increase defense industry expenditures by 229 percent, health investments by 43 percent, and industrial infrastructure investments by 54 percent.
While providing additional credit for SMEs within the scope of the Manufacturing Industry Financing Support Program, YTAK loans will also be utilized.