Turkey Targets 5% Economic Growth by 2029

Turkey has unveiled its new medium-term economic program, setting ambitious targets for economic growth, inflation, unemployment and the budget deficit through 2029.

Vice President Cevdet Yilmaz announced the government’s latest economic projections on Sunday, outlining a gradual acceleration in gross domestic product growth over the coming years. Turkey’s GDP growth is expected to reach 5% by 2029, compared with a projected 3.3% expansion this year.

Under the government’s economic roadmap, GDP growth is forecast to strengthen to 4.2% in 2027 before accelerating further to 4.6% in 2028. The projections suggest Ankara expects economic activity to gain momentum steadily during the remainder of the decade.

Bringing inflation under control is another major focus of Turkey’s medium-term economic program. The government expects inflation to decline to 21% in 2027 and then fall sharply to 13.5% in 2028. By 2029, officials are targeting an inflation rate of 9%, bringing annual price growth back into single-digit territory.

Turkey is also aiming to gradually reduce its budget deficit as a share of the economy. The budget deficit-to-GDP ratio is projected at 3.5% in 2027, before narrowing to 3.1% in 2028 and 2.8% in 2029.

Meanwhile, the government expects improvements in the labor market to continue over the medium term. Turkey’s unemployment rate is forecast at 8.1% in 2026 and is expected to decline gradually to 7.6% by 2029.

The newly announced targets provide a roadmap for Turkey’s economic policy through the end of the decade, with stronger GDP growth, lower inflation, declining unemployment and improved fiscal balances forming the core of the government’s strategy.

Achieving the targets would mark a significant improvement in Turkey’s economic outlook, particularly if policymakers succeed in reducing inflation to single digits while maintaining steady economic expansion.