Türkiye has proposed a significant budget of approximately 27.28 trillion Turkish lira ($550.8 billion) for 2027, with a strong focus on reducing inflation, boosting housing investment, and fostering economic growth. Vice President Cevdet Yılmaz announced that the budget is designed to enhance economic resilience, support investment, and improve living standards amidst challenging global economic conditions. The proposal is set to be submitted to Parliament for approval.
The government anticipates that Türkiye’s economy will grow by 4.2% in 2027, up from a projected 3.3% in 2026, with expectations of gradual acceleration to 5% by 2029. This growth is expected to be driven by productivity improvements, technological innovation, and investment. The employment landscape is also projected to improve, with an increase of 657,000 jobs in 2027 and an anticipated decline in the unemployment rate to 8%.
Inflation reduction is a central goal, with the government aiming to lower annual inflation to 21% by the end of 2027, down from a projected 28.4% at the end of 2026. Yılmaz emphasized the importance of price stability, with social housing and food supply initiatives identified 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 bring the current account deficit below 2% of GDP next year.
Further plans include improving energy security and supporting sustainable economic expansion through investment and structural reforms, reflecting the government’s broader strategy to bolster Türkiye’s economic framework in the coming years.