Turkey targets single-digit inflation by 2029, new roadmap shows

Turkey’s government has unveiled an updated medium-term economic programme that forecasts inflation easing to 28.4% this year and 21% by 2027, before reaching single-digit levels in 2029. Vice President Cevdet Yilmaz presented the roadmap on Sunday, reaffirming that the primary goal remains bringing inflation down to single digits while maintaining fiscal discipline.

The programme keeps the broad framework of previous plans, with growth projections set at 4.2% for 2027, 4.6% for 2028, and 5.0% for 2029. The budget deficit is expected to narrow to 3.5% of GDP by 2027. By the end of the programme period, the government aims to lift national income above $2.2 trillion and raise exports of goods and services to $450 billion.

On the employment front, the plan targets the creation of 2.1 million additional jobs and an unemployment rate below 8% by the end of 2029.

Yilmaz noted that regional tensions, particularly the impact of the Iran war, have temporarily stalled the strong downward trend in inflation due to supply-side pressures. The direct and indirect effects of the conflict on inflation have been estimated at roughly 7 percentage points. The government is closely monitoring these developments and has taken measures to limit their impact on the Turkish economy.