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- October 13, 202618°
- BIST10012,151-0.94%
- USD49.220.00%
- EUR55.21+0.28%
- GOLD4,195.00+0.10%
- INTEREST37.00%-1.00
- BITCOIN81,946-2.06%
- October 13, 202618°
Vice President Cevdet Yılmaz expects inflation to reach 28.4% by end-2026
Vice President Cevdet Yılmaz unveiled the Medium-Term Program for 2027-2029 at the Presidential Complex and said inflation was expected to reach 28.4% by the end of 2026. The program targets reducing inflation to 9% in 2029, increasing national income to more than $2.2 trillion and raising exports to $450 billion.
Vice President Cevdet Yılmaz unveiled the Medium-Term Program covering the 2027-2029 period at the Presidential Complex. Yılmaz said significant progress had been made in combating inflation and that inflation, which reached 75.5% in May 2024, had declined markedly as a result of the policies implemented.
Yılmaz said they expected inflation to resume its downward trend in the final quarter of 2026 and reach 28.4% at the end of the year. The program targets reducing inflation to 21% in 2027, 13.5% in 2028 and 9% in 2029.
Growth and income targets
Growth is expected to reach 3.3% in 2026 under the program. Yılmaz said growth was projected to rise to 4.2% in 2027, 4.6% in 2028 and 5% in 2029.
Yılmaz said national income was expected to exceed $1.8 trillion for the first time in the history of the Republic at the end of 2026, while per capita national income was expected to surpass $20,000. By the end of the program period, national income is targeted to exceed $2.2 trillion and exports of goods and services to reach $450 billion.
Deposit and budget deficit projections
Yılmaz said confidence in the Turkish lira continued to increase as a result of the policies implemented. He said the share of Turkish lira deposits in total deposits had risen from 31.6% to 61.5%.
Yılmaz said the budget deficit was targeted to be reduced gradually and announced that the deficit, projected at 3.5% for 2026, was expected to stand at 3.1% as a result of the measures taken. The ratio of the budget deficit to national income, projected at 3.5% in 2027, is targeted to be reduced to 2.8% by the end of the program period.
Yılmaz also said that, according to the Central Bank's calculations, the war's direct and indirect impact on inflation was approximately 7 percentage points.
Economic resilience and investment targets
The Medium-Term Program adopts a sustainable growth approach that is compatible with macroeconomic stability, increases production capacity and does not create inflationary pressures. It aims to prioritize economic security and resilience, reduce external dependence in critical areas and strengthen the economy's resilience to shocks.
The program also includes the goal of a Türkiye that develops domestic technology and produces high added value in the defense industry. Yılmaz announced that defense spending would be increased by 229%, while social housing investments would be raised by 150% to facilitate access to housing for low- and middle-income citizens.
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