Türkiye has announced a proposed budget of approximately 27.28 trillion Turkish lira ($550.8 billion) for 2027, with a focus on reducing inflation, boosting housing investment, and fostering economic growth. Vice President Cevdet Yılmaz emphasized that the budget is designed to enhance economic resilience, support investment, and improve living standards in the face of challenging global economic conditions. The proposal is set to be submitted to Parliament.
The government forecasts an economic growth rate of 4.2% in 2027, up from a projected 3.3% in 2026, with an expectation of gradual acceleration to 5% by 2029. This growth is anticipated to be driven by productivity improvements, technological innovation, and increased investment. Employment is expected to rise by 657,000 in 2027, and the unemployment rate is projected to decrease to 8%.
In terms of inflation, the government aims to bring down the annual rate to 21% by the end of 2027, from a projected 28.4% at the end of 2026. Price stability remains a central concern, with social housing and food supply initiatives highlighted as key measures to alleviate inflationary pressures.
The budget also projects a budget deficit reaching 3.5% of gross domestic product (GDP) in 2027, while maintaining a primary budget surplus. Efforts to strengthen exports and reduce dependence on imported energy are expected to help lower the current account deficit to below 2% of GDP next year.
Additionally, the government plans to enhance energy security and support sustainable economic expansion through targeted investments and structural reforms. These initiatives are part of the broader strategy to create a more resilient and robust economic framework for Türkiye in the coming years.