Türkiye targets $2.2 trillion economy, single-digit inflation by 2029: VP

Istanbul [Turkiye], September 11: Türkiye aims to expand its economy to $2.2 trillion, create 2.1 million additional jobs and bring inflation back to single digits by the end of 2029, Vice President Cevdet Yilmaz said.
Yilmaz, Treasury and Finance Minister Mehmet Simsek and Presidency of Strategy and Budget head Ibrahim Senel met with foreign media representatives at the Presidential Complex in Ankara as part of the "2027-2029 Medium-Term Programme (MTP) International Media Meeting."
Yilmaz said the government would build on the macroeconomic gains achieved since 2023 and transform greater stability into sustainable growth and productivity.
"We project that growth, which we expect to be realized at 3.3% in 2026, will strengthen gradually to reach 4.2% in 2027, 4.6% in 2028 and, finally, 5% at the end of the programme," he said.
The government aims for sustainable growth that is consistent with macroeconomic stability, increases production capacity and productivity, and does not generate inflationary pressure, he added.
Total factor productivity is expected to contribute around 1.2 percentage points to growth in 2026 and approximately 1.1 percentage points annually throughout the programme.
National income is projected to exceed $1.8 trillion and per-capita income to surpass $20,000 for the first time by the end of 2026.
By 2029, nominal GDP is expected to reach $2.2 trillion and per-capita income around $25,000, while combined exports of goods and services are projected to rise to $450 billion.
"That will be the first time we exceed the $2-trillion threshold," Yilmaz said as quoted by Anadolu Agency.
The government expects year-end inflation at 28.4% in 2026 before it slows to 21% in 2027 and 13.5% in 2028, ultimately returning to single digits in 2029.
Yilmaz said inflation, which peaked at 75.5% in May 2024, entered a clear downward trend before supply-side pressures caused by the regional war temporarily slowed the improvement.
Annual inflation stood at 31.5% in August, he said, adding that it was expected to resume its downward trend in the final quarter.
Türkiye expects to generate around 700,000 jobs annually, creating 2.1 million additional jobs during the program and reducing unemployment to below 8%.
"This will be generated through growth, of course, but not only through growth. We will also pursue labor market reforms and active labor market policies," Yilmaz said.
Source: Emirates News Agency