Türkiye has announced its proposed budget for 2027, totaling approximately 27.28 trillion Turkish lira ($550.8 billion), with a focus on inflation reduction, housing investment, employment, and economic growth. Vice President Cevdet Yılmaz stated that the budget aims to bolster economic resilience while enhancing living standards amidst global economic challenges. The proposal is set to be submitted to Parliament for approval.
The government anticipates the economy will grow by 4.2% in 2027, an increase from the projected 3.3% growth in 2026, with expectations of reaching 5% by 2029. This growth is expected to be driven by productivity improvements, technological advancements, and increased investments. Employment is projected to rise by 657,000 in 2027, reducing the unemployment rate to an estimated 8%.
In its efforts to tackle inflation, the government aims to reduce the annual inflation rate to 21% by the end of 2027, down from the anticipated 28.4% at the close of 2026. Yılmaz emphasized the importance of price stability and identified social housing and food supply initiatives as key measures to alleviate inflationary pressures.
Türkiye’s budget deficit is forecast to reach 3.5% of its gross domestic product (GDP) in 2027, while the government plans to maintain a primary budget surplus. The current account deficit is expected to decrease to below 2% of GDP next year as authorities strive to boost exports and decrease reliance on imported energy.
The government also aims to enhance energy security and support sustainable economic expansion through strategic investments and structural reforms. These efforts are part of a broader strategy to ensure long-term economic stability and growth for Türkiye.