Türkiye’s medium-term economic program aims to accelerate to 3.5 percent in 2024

(MENAFN) Türkiye’s medium-term economic program, unveiled on Thursday, sets ambitious targets for GDP growth, with aims to accelerate to 3.5 percent in 2024, 4.5 percent by 2026, and 5 percent in 2027. These targets are driven by economic reforms and structural adjustments, which the government hopes will unlock the country’s growth potential. Vice President Cevdet Yilmaz, in revealing the program, noted that the growth projection for this year was revised slightly downward to 3.5 percent, from an earlier estimate, due to increasing geopolitical tensions in the region. Nonetheless, these goals aim to maintain stable and sustainable long-term growth while aligning with a path of disinflation.

According to Yilmaz, Türkiye's GDP at current prices is forecasted to increase significantly, reaching 44.2 trillion liras (USD1.33 trillion) in 2024, compared to 26.5 trillion liras (USD1.13 trillion) in 2023. By 2027, GDP is expected to grow further to 83.1 trillion liras (USD1.77 trillion), alongside a projected GDP per capita of USD20,420. This economic expansion is intended to bolster the country's ability to achieve its long-term financial objectives while ensuring that it continues to grow at a steady pace.

The program also emphasizes Türkiye’s determination to control inflation, with a goal of bringing the inflation rate down to 17.5 percent by 2025. Further disinflation efforts aim to lower the inflation rate to 9.7 percent in 2026 and eventually to 7 percent in 2027. Yilmaz underscored the central importance of achieving price stability, as the program's main objective, in stabilizing the economy. The most recent inflation data from TurkStat showed an annual consumer inflation rate of 51.97 percent in August 2023, a slight improvement from previous months.

In addition to economic growth and inflation control, the Turkish government is also focused on employment. The program aims to create 2.3 million new jobs by 2027, which Yilmaz believes will help unlock the economy's full growth potential and gradually reduce unemployment. The jobless rate is expected to fall to 9.3 percent this year, down from earlier estimates of 10.3 percent, though it may rise slightly to 9.6 percent next year as part of a broader economic rebalancing.

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