Türkiye forecasts 4.2% GDP growth in 2027 — Anadolu Agency

In Türkiye, Vice President Cevdet Yılmaz presented the draft state budget for 2027 in Ankara, which envisages an acceleration of economic growth to 4.2% after a projected 3.3% in 2026. According to Anadolu Agency, the government is counting on an improvement in the global economic situation and a recovery in external demand.

According to Yılmaz, Türkiye’s economy grew by 3.7% in 2025. He noted that investment outpaced private consumption, strengthening the country’s production capacity. By the end of the medium-term program, the government plans to gradually raise growth to 5% through policies aimed at productivity, technological transformation and innovation.

Inflation and employment forecast

Annual inflation, which fell below 30% in September, is projected by the government to stand at 28.4% at the end of 2026 and 21% at the end of 2027. Yılmaz called price stability the program’s main priority. The government also expects the number of employed people to increase by 657,000 next year, the labor force participation rate to reach 53.4%, and unemployment to decline from the projected 8.1% in 2026 to 8%.

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The current account deficit is estimated by the government to decrease from 2.6% of GDP in 2026 to less than 2% in 2027. The authorities plan to support exports, strengthen energy supply security and reduce dependence on energy imports.

Budget parameters

The draft budget provides for expenditures of 27.276 trillion Turkish liras, or $551.2 billion, and revenues of 23.408 trillion liras. The expected deficit will amount to $78.1 billion, or 3.5% of GDP. Excluding earthquake-related expenditures, the deficit is projected at 2.8% of GDP.

$80.2 billion is planned for debt interest payments, $143.7 billion for personnel compensation and $206.7 billion for current transfers. Funding for urban transformation in 2027 is to be increased by 176% to $5.57 billion.