Türkiye has proposed a $550.8 billion budget for 2027, focusing on bolstering economic resilience through investments in housing, employment, and inflation reduction. The budget, equivalent to approximately 27.28 trillion Turkish lira, is poised to support growth amid challenging global economic conditions, according to Vice President Cevdet Yılmaz.
The government anticipates a 4.2% economic growth rate in 2027, improving from a projected 3.3% in 2026. This growth is expected to continue accelerating to 5% by 2029, driven by productivity enhancements, technological innovation, and substantial investment. Employment is set to rise, with projections indicating an increase of 657,000 jobs and a reduction in the unemployment rate to 8% by 2027.
A key objective of the budget is to address inflation, with targets to decrease the annual rate to 21% by the end of 2027 from a projected 28.4% at the end of 2026. Yılmaz emphasized price stability as a central priority, citing initiatives in social housing and food supply as crucial measures to alleviate inflationary pressures.
The proposed budget also forecasts a budget deficit reaching 3.5% of the gross domestic product (GDP) in 2027, while maintaining a primary budget surplus. Efforts to enhance exports and reduce reliance on imported energy are expected to bring the current account deficit below 2% of GDP next year.
Additionally, the government plans to enhance energy security and support sustainable economic growth through investments and structural reforms. The budget is ready for parliamentary submission, underscoring Türkiye’s commitment to strengthening its economic framework and improving living standards.