UPDATE - Türkiye aims 5% GDP growth in 2027

UPDATE WITH MORE DETAILS, REMARKS FROM VICE PRESIDENT

By Tuba Ongun

Türkiye's GDP growth aimed to accelerate to 3.5% next year, 4.5% in 2026 and 5% in 2027 thanks to economic reforms and structural adjustments, according to the government's medium-term economic program revealed on Thursday.

Unveiling the program, Vice President Cevdet Yilmaz said Turkish government projected 3.5% GDP growth this year, a 0.5 percentage point downward revision due to rising geopolitical tensions in region.

"These targets aim to ensure that the economy reaches its potential growth capacity and achieves a stable growth trend in the long term," Yilmaz said, stressing that the growth path aligns with disinflation course.

The GDP at current prices is expected to increase to 44.2 trillion liras ($1.33 trillion) this year, up from 26.5 trillion ($1.13 trillion) last year, he said.

The program targets an 83.1 trillion liras ($1.77 trillion) GDP at current prices in 2027 and a $20,420 GDP per capita at current prices, Yilmaz noted.

Last year, the Turkish economy grew 5.1%, with its GDP at current prices reaching $1.13 trillion.

Stressing that the main objective of the program is to ensure price stability, Yilmaz said the consumer inflation is aimed to decrease to 17.5% in 2025.

Türkiye's new economic program forecasted inflation rate would fall down to single digits, 9.7% in 2026 and 7% in 2027, he said.

According to latest data from the TurkStat, Türkiye's annual consumer inflation rate eased to 51.97% in August, the lowest since July 2023.

The government aims to generate 2.3 million additional jobs during the mid-term economic program or 2025-27, Yilmaz underlined, adding: "This target will raise the growth potential of the economy and ensure a gradual reduction in unemployment."

The jobless rate is projected to come in at 9.3% this year, revised downwards from 10.3%, and to increase to 9.6% next year as part of the rebalancing process of the economy, Yilmaz noted.

"Unemployment rates are expected to decline to 9.2% and 8.8% in 2026 and 2027, respectively. This downward trend reflects the positive effects of economic growth and structural reforms on the labor market," he said.

Türkiye's current account deficit to GDP ratio is projected to fluctuate during the program period, with 1.7% this year, 2% next year, 1.6% in 2026 and 1.3% in 2027.