AKP's New Medium-Term Plan: Growth Targets Cut, Inflation Forecasts Raised

General Framework The AKP announced its new Medium‑Term Plan (MTP) covering 2027‑2029 through Deputy President Cevdet Yılmaz.
The plan outlines economic objectives and policy measures for the coming years.
Growth and Inflation Targets For 2026, the growth target was set at 3.3%, down from the previous 3.8%.
The inflation forecast was increased to 28.4%, surpassing the earlier 16% estimate.
2027: Growth 4.2%, Inflation 21% 2028: Growth 4.6%, Inflation 13.5% 2029: Growth 5.0%, Inflation 9.0% Employment and Social Policies The plan aims to reduce unemployment to 8.1% in 2026, 8.0% in 2027, 7.8% in 2028, and 7.6% in 2029, creating 2.1 million new jobs.
Initiatives include vocational training, increased participation of women and young workers, and expanded child‑care services.
Macroeconomic Indicators By 2029, the plan projects a GDP of $2.2 trillion, exports of $450 billion, and a per‑capita income of $25,000.
The current‑account deficit is expected to be 1.6% of GDP, while the trade deficit is projected to fall from $105 billion in 2026 to $96 billion in 2029.
Budget and Spending The budget deficit is forecast at 3.1% of GDP in 2026, rising to 3.5% in 2027, and then falling to 2.8% by the end of the program.
Earthquake‑zone spending is set at 5.4 trillion lira in 2026, with an additional $10 billion earmarked for 2027.
Conclusion The new Medium‑Term Plan cuts growth targets while raising inflation expectations, setting a comprehensive roadmap for economic stability with 5% growth, 9% inflation, and 2.1 million new jobs by 2029.