Türkiye has proposed a substantial budget of 27.28 trillion Turkish lira (approximately $550.8 billion) for 2027, focusing on boosting economic resilience and enhancing living standards amid global economic challenges. Vice President Cevdet Yılmaz outlined the government’s priorities, which include reducing inflation, enhancing housing investments, increasing employment, and fostering economic growth.
The proposed budget is now ready for submission to Parliament and aims to position Türkiye on a steady growth trajectory. The government predicts an economic growth rate of 4.2% in 2027, up from a projected 3.3% in 2026, with expectations to accelerate to 5% by 2029. This growth is anticipated to be driven by productivity improvements, technological innovation, and increased investment.
Employment is expected to rise significantly, with an increase of 657,000 jobs forecasted for 2027, helping to reduce the unemployment rate to 8%. The government is also targeting a decrease in annual inflation, aiming to bring it down to 21% by the end of 2027 from a projected 28.4% at the end of 2026. Yılmaz emphasized the importance of price stability, with initiatives in social housing and food supply being key measures to alleviate inflationary pressures.
On the fiscal front, Türkiye’s budget deficit is anticipated to reach 3.5% of GDP in 2027, while maintaining a primary budget surplus. Additionally, the current account deficit is projected to fall below 2% of GDP next year as the country works on strengthening exports and reducing its reliance on imported energy.
The government also plans to bolster energy security and support sustainable economic expansion through targeted investments and structural reforms. These measures are intended to solidify Türkiye’s economic foundation and prepare the country for future challenges and opportunities.