Medium-Term Program Prepared for the 2027-2029 Period Announced
The new Medium-Term Program outlining the roadmap for the Turkish economy over the next three years has been announced and entered into force in the Official Gazette.
Vice President Cevdet Yılmaz shared the details of the new Medium-Term Program covering the 2027-2029 period with the public at a meeting held at the Presidential Complex.
Details of the New MTP
The Medium-Term Program for the 2027-2029 period, announced by Vice President Cevdet Yılmaz and published in the Official Gazette, determined the new roadmap for the Turkish economy. Minister of Treasury and Finance Mehmet Şimşek and Central Bank Governor Fatih Karahan also made evaluations at the meeting.
Growth and Industry Expectations
Economic assumptions were updated and reconsidered due to global uncertainties and regional wars. In the new program, the growth expectation for 2026 was announced as 3.3 percent, while the industrial growth forecast was revised down to 2.3 percent. Growth is targeted to rise to 4.2 percent in 2027, 4.6 percent in 2028, and 5 percent in 2029.
Inflation Forecasts and Effects
On the inflation side, the year-end 2026 CPI forecast was updated to 28.4 percent, and the impact of war conditions on inflation was calculated to be approximately 7 points. The inflation rate is projected to decline in the coming years to 21 percent in 2027, 13.5 percent in 2028, and 9 percent in 2029, respectively.
Unemployment Rate Targets
Within the framework of the announced new economic program, expectations regarding the labor market were also shared. Accordingly, the unemployment rate is expected to be 8.0 percent in 2027, 7.8 percent in 2028, and 7.6 percent in 2029.