Türkiye has put forth a comprehensive budget proposal for 2027, amounting to approximately 27.28 trillion Turkish lira ($550.8 billion). The plan prioritizes reducing inflation, boosting housing investment, and spurring economic growth. Vice President Cevdet Yılmaz emphasized that the budget aims to bolster economic resilience, support investments, and improve living standards, particularly in the face of challenging global economic conditions. The proposal is now ready for submission to Parliament.
The Turkish government projects a significant economic growth rate of 4.2% in 2027, up from a forecasted 3.3% in 2026. By 2029, growth is expected to accelerate to 5%, driven by productivity enhancements, technological advancements, and increased investment. The budget also anticipates the creation of 657,000 jobs in 2027, with the unemployment rate expected to fall to 8%.
Inflation reduction is a central focus, with a target to lower annual inflation to 21% by the end of 2027, from a projected 28.4% at the end of 2026. Yılmaz pointed out that price stability is critical, with social housing and food supply initiatives playing vital roles in mitigating inflationary pressures.
The proposed budget forecasts a deficit of 3.5% of the gross domestic product (GDP) in 2027, while maintaining a primary budget surplus. Additionally, Türkiye aims to reduce its current account deficit to below 2% of GDP next year by enhancing exports and decreasing reliance on imported energy.
Efforts to improve energy security and support sustainable economic growth are also outlined in the budget, focusing on investment and structural reforms. These initiatives are part of a broader strategy to fortify Türkiye’s economic framework and ensure long-term prosperity.