Türkiye has set forth a proposed budget for 2027 valued at approximately 27.28 trillion Turkish lira, or $550.8 billion, focusing on key priorities such as reducing inflation, boosting housing investments, enhancing employment, increasing exports, and fostering economic growth. Vice President Cevdet Yılmaz emphasized that the budget is designed to bolster economic resilience while simultaneously supporting investments and improving living standards, all amidst challenging global economic conditions. The proposal is now ready for submission to Parliament.
The Turkish government anticipates a 4.2% growth in the economy by 2027, an increase from the projected 3.3% in 2026. This growth is expected to gradually rise to 5% by 2029, driven by productivity improvements, technological advancements, and strategic investments. Employment is projected to rise by 657,000 positions in 2027, with the unemployment rate expected to decrease to 8%.
Efforts to reduce inflation are a central focus of the budget, with aims to lower the annual rate to 21% by the end of 2027, down from a projected 28.4% by the end of 2026. Yılmaz highlighted price stability as a crucial priority, with social housing and food supply initiatives identified as vital measures to mitigate inflationary pressures.
Türkiye’s budget deficit is expected to reach 3.5% of its gross domestic product (GDP) in 2027, while the government forecasts maintaining a primary budget surplus. The current account deficit is projected to fall below 2% of GDP by next year, as authorities aim to bolster exports and lessen reliance on imported energy.
Additionally, the government has plans to enhance energy security and support sustainable economic expansion through targeted investments and structural reforms. This comprehensive approach is intended to strengthen the nation’s economic framework and promote long-term growth and stability.