Turkey Projects GDP Growth Reaching 5% by 2029 in New Plan

Türkiye's government projects gross domestic product growth to accelerate to 5.0% by 2029 under its newly unveiled medium-term economic program, rising from a forecasted 3.3% expansion for the current year. The projections outline a trajectory aimed at stabilizing inflation and narrowing fiscal deficits while gradually boosting overall economic output.

"GDP growth is seen at 4.2% in 2027, 4.6% in 2028, and 5% in 2029," said Cevdet Yilmaz, Vice President, Republic of Turkey, in a statement regarding the economic program.

Inflation and Fiscal Deficit Projections

The economic roadmap details a steady deceleration in consumer price inflation over the coming years alongside tighter fiscal management. Inflation is forecast to ease to 21.0% in 2027 and 13.5% in 2028 before ultimately reaching 9.0% by 2029.

Accompanying the disinflation path, the government's budget deficit-to-GDP ratio is projected to narrow over the medium term. The deficit is estimated at 3.5% in 2027, before falling to 3.1% in 2028 and reaching 2.8% by 2029.

Employment and Labor Market Outlook

Labor market indicators within the official program point toward incremental improvements in joblessness over the multi-year forecast period. Unemployment is expected to register at 8.1% in 2026 before easing downward gradually to 7.6% by the final year of the program in 2029.

These targets establish official macroeconomic benchmarks for investors, creditors, and policymakers tracking Türkiye's ongoing monetary and fiscal adjustments. The success of the medium-term program depends on maintaining projected deficit reductions while navigating domestic price pressures.