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[BUSINESS] · Türkiye · 11 sources

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Turkey Medium Term Program faces criticism over inflation targets

Turkey’s 2027–2029 Medium Term Program (OVP) has drawn significant political criticism and academic scrutiny regarding its inflation targets and sectoral allocations. The program aims to reduce inflation to 21% in 2027, 13.5% in 2028, and 9% by 2029.

CHP Vice President Orhan Sarıbal criticized the program for its perceived lack of foresight, noting that the 2026 inflation target was revised upward from 16% to 28.4%. He specifically highlighted a 30% reduction in the agricultural budget, arguing that the plan fails to protect farmers from rising input costs like fuel and fertilizer while increasing interest expenditures.

YENİ Parti Group Deputy Chairman Gökhan Günaydın also dismissed the OVP as lacking credibility, describing it as a “desperate struggle” that ignores the economic realities faced by citizens.

Conversely, the government and economic analysts suggest the program is a necessary phase of macroeconomic balancing. Finance Minister Mehmet Şimşek emphasized that while inflation remains high, the program focuses on fiscal discipline and maintaining investment despite geopolitical pressures. The OVP outlines eight key developments intended to accelerate the disinflation process and achieve price stability through coordinated monetary and fiscal policies.

Entities

CHP · Gökhan Günaydın · Mehmet Şimşek · Orhan Sarıbal · Recep Tayyip Erdoğan · Republican People's Party · Turkey · Yeni Parti

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