New Term Targets and Inflation Forecasts Announced in the Medium-Term Program
Within the framework of the new Medium-Term Program, it is targeted that inflation will drop to single digits by 2029 and national income will exceed 2.2 trillion dollars.
The updated new economic targets within the scope of the Medium-Term Program have been shared with the public. According to the disclosed data, inflation is projected to decline gradually to 9 percent in 2029, and national income is projected to exceed 2.2 trillion dollars.
Three-Year Forecasts for Inflation
In line with the sustainable growth target, it was stated that the priority of the program is to resolutely continue the disinflation process. Inflation is projected to be 28.4 percent in 2026, 21 percent in 2027, and 13.5 percent in 2028.
Single-Digit Inflation Target
According to the shared schedule, inflation is targeted to decline to 9 percent in 2029 and drop back to single-digit figures by the end of the program period.
Fiscal Stance and Budget Deficit
While it was stated that a disciplined fiscal stance will be maintained, the ratio of the budget deficit to national income for 2026 is expected to be 3.1 percent with the measures taken. It is aimed to reduce the budget deficit ratio to 2.8 percent by the end of the program period.
Current Account Balance
It is anticipated that the current account deficit will gradually decrease as the impact of regional developments diminishes. The deficit ratio is forecasted to decline to 1.9 percent in 2027, 1.8 percent in 2028, and 1.6 percent in 2029.
Earthquake Expenditures and Investments
It is estimated that a total of 5.4 trillion Turkish liras has been spent at 2026 prices in order to reduce disaster risks and compensate for damages. This amount is expected to exceed 116 billion dollars by the end of 2027.
Employment and Growth Projections
Throughout the program period, it is projected to create 2.1 million additional jobs and reduce the unemployment rate below 8 percent. National income is targeted to exceed 2.2 trillion dollars, and exports of goods and services are targeted to reach 450 billion dollars.