Turkey presents new medium-term economic programme with adjusted forecasts
Turkey’s Vice President Cevdet Yılmaz has announced the medium-term programme (OVP) for the period from 2027 to 2029.
This programme sets out the macroeconomic objectives for the Turkish economy, covering critical areas such as inflation, economic growth, exports, and employment.
The announcement establishes a three-year roadmap for the country’s economic policy.
As part of the programme, updated forecasts for 2026 were also presented.
The growth projection for the current year has been adjusted to 3.3 per cent.
Simultaneously, the forecast for industrial growth was revised downwards to 2.3 per cent.
This decline in expected industrial growth may have consequences for the country’s production capacity and job creation within key sectors. A particularly significant part of the announcement was the inflation forecast.
The projection for year-end inflation in 2026 has been increased to 28.4 per cent.
This upward revision signals persistent price pressure within the economy, which directly affects the purchasing power of Turkish households and the operating costs for businesses.
High inflation remains a central challenge for both the Central Bank of Turkey and the government.
The medium-term programme is essential for providing predictability and direction in Turkey’s economic management.
The adjusted figures for 2026, particularly the increased inflation forecast and lower industrial growth, underscore the demanding economic conditions.
The government is attempting to balance growth ambitions with the need to curb inflation, which has been a significant concern in recent years. For Turkish businesses and households, these forecasts signify a continuing period focused on cost management and adaptation to an environment characterised by rising prices.
The moderate growth and the challenges faced by the industrial sector indicate that there is a need for targeted measures to stimulate production and investment.
The programme will guide decisions regarding monetary policy, the budget, and reforms in the coming years.
Source: Haberglobal
