Turkey economic policy and financial regulation

Turkish Treasury and Finance Minister Mehmet Şimşek has outlined the strategic roadmap for the 2027-2029 Medium Term Program, focusing on economic growth and financial integrity.

Initial reports highlighted economic performance, noting a 1.1% quarterly and 2.3% annual growth rate in the second quarter of 2023. Şimşek addressed tax audit strategies, stating that the audit rate for large companies rose to 31.3% in 2026, while the rate for small companies decreased to 1.1%. He emphasized a shift toward using big data and artificial intelligence to encourage voluntary compliance.

Subsequent updates expanded on the government’s commitment to combating money laundering, terrorism financing, and illegal financial activities. Şimşek also addressed international compliance, noting that Turkey’s framework for natural gas payments, specifically regarding imports from Iran, is managed through agreements with the United States to ensure adherence to U.S. regulations. To combat stagflation, discussions have shifted toward the necessity of a production-based economy driven by technology and R&D to stabilize the trade deficit and boost tax revenue.