New Party Economy Report: Inflation, Investment and Tax Policies Criticized

Inflation Forecast The New Party updated its 2026 inflation projection, raising it by 12.4 percentage points within a year.
While the Central Bank expected 15% inflation by the end of 2027, the party’s program anticipated 21%, highlighting a 6‑point gap that signals coordination issues in economic management.
Employment and Unemployment The program projected a net employment increase of only 13,000 people for 2025‑2026.
The New Party argued that the decline in unemployment was due more to people giving up job searches than to new job creation.
Budget Expenditures Analysis showed that for every 1 lira the state allocated to investment, it paid more than 2 lira in interest.
Public investment remained at 3.2% of national income throughout the program period, prompting the party to criticize the phrase “interest first, investment last.” Tax Burden The total tax burden as a share of national income rose steadily from 2025 to 2029, with about 60% of tax revenue coming from indirect taxes.
The New Party noted the absence of a concrete target to alter this structure in the program.
Income Distribution Although the program mentioned income distribution, it failed to set measurable goals.
The party pledged that, if elected, it would establish annual targets for the Gini coefficient to narrow the gap between the richest and poorest 20%.
Production and Exports In two of the last eight quarters, industry contracted and fixed‑capital investment growth slowed.
Net export growth was projected at 0% in 2027, 0.1% in 2028, and 0.2% in 2029, a figure the New Party said contradicted the “production and export‑focused growth” narrative.
Agriculture Agriculture was treated as an inflation item rather than a strategic sector.
The three‑year program set no target for agricultural added value.
The party promised to maintain real support for agriculture and to set purchase prices based on production costs if it came to power.
Wage Policy Minimum wage and public sector collective agreements would consider actual inflation and welfare share instead of the targeted inflation rate.
Social Assistance Changes to pension and health repayments would be announced in advance, and income support would be tied to objective criteria rather than political favor.
Economic Approach The New Party outlined its approach under the themes of “accountable targets, a fairer tax system, measurable income distribution, and an economy focused on production.”