Türkiye has introduced a proposed budget for 2027 valued at approximately 27.28 trillion Turkish lira, or $550.8 billion, focusing on key areas such as inflation reduction, housing investment, and economic growth. Vice President Cevdet Yılmaz stated that the budget is designed to fortify economic resilience while supporting investment and enhancing living standards in the face of challenging global economic conditions. The proposal is set to be presented to Parliament for approval.
The government anticipates that Türkiye’s economy will grow by 4.2% in 2027, up from a projected 3.3% in 2026. Growth is expected to continue accelerating to reach 5% by 2029, driven by productivity gains, technological advancements, and increased investment. Employment is projected to rise by 657,000 jobs in 2027, with the unemployment rate expected to decrease to 8%.
Inflation is a central focus, with the government aiming to reduce annual rates to 21% by the end of 2027, down from an estimated 28.4% at the end of 2026. Yılmaz emphasized price stability as a priority, noting that initiatives in social housing and food supply are critical measures to alleviate inflationary pressures.
The budget also forecasts a deficit reaching 3.5% of the gross domestic product (GDP) in 2027, while maintaining a primary budget surplus. Additionally, the current account deficit is expected to drop below 2% of GDP next year as efforts to bolster exports and lessen reliance on imported energy continue.
To further support sustainable economic expansion, the government plans to enhance energy security through investments and structural reforms. These measures are aimed at ensuring long-term economic stability and growth, aligning with the broader goals set forth in the proposed budget.