Türkiye has announced a proposed budget for 2027 amounting to roughly 27.28 trillion Turkish lira, equivalent to $550.8 billion. The primary focus of this budget is on reducing inflation and fostering economic growth through strategic investment in housing, employment, and exports. Vice President Cevdet Yılmaz emphasized the plan’s role in bolstering economic resilience and enhancing living standards during a period of global economic challenges. The proposal is set to be presented to Türkiye’s Parliament for approval.
The Turkish government projects an economic growth rate of 4.2% in 2027, anticipating a rise from the forecasted 3.3% in 2026. This growth is expected to continuously accelerate, reaching 5% by 2029, driven by advances in productivity, technological innovations, and increased investments. Employment figures are slated to improve, with an estimated addition of 657,000 jobs in 2027, bringing the unemployment rate down to 8%.
Efforts to curb inflation are a central component of the budget, aiming to decrease the annual rate to 21% by the end of 2027 from a projected 28.4% at the close of 2026. To ease inflationary pressures, the government plans to implement initiatives in social housing and food supply. Yılmaz highlighted price stability as a key priority, noting these initiatives as essential measures.
Financially, Türkiye’s budget deficit is expected to reach 3.5% of the GDP in 2027, yet the government aims to maintain a primary budget surplus. Additionally, the current account deficit is projected to fall below 2% of GDP next year as efforts are made to boost exports and decrease reliance on imported energy. The administration is also focusing on enhancing energy security and supporting sustainable economic growth through targeted investments and structural reforms.