[REVISION HISTORY]

Reactions to Türkiye's 2027-2029 Medium-Term Program

Updated 26 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-11 09:42 UTC → 2026-09-11 22:53 UTC · added ~~removed~~

The Turkish government has released its 2027–2029 Medium-Term Program (OVP), a strategic roadmap focused on disinflation, fiscal discipline, and sustainable growth. While the program aims for single-digit inflation by 2029, recent updates have adjusted the 2026 year-end inflation forecast to 28.4%, with subsequent targets of 21% in 2027, 13.5% in 2028, and 9% in 2029. Government officials, including Vice President Cevdet Yılmaz and Finance Minister Mehmet Şimşek, have highlighted the complete removal of the Currency-Protected Deposit (KKM) scheme and a significant increase in foreign exchange reserves, which reached $188.2 billion by late August 2026. Economic growth projections for 2026 have also been adjusted, with targets ranging between 3.3% and 3.5%. Regarding social security, the program projects wage increases of 9.04% for SSK and Bağ-Kur retirees, and 7% for civil servants and civil servant retirees, while aiming for tax revenues to reach 27.7 trillion TL by 2029. Opposition leaders and academic observers have criticized the program’s credibility and sectoral allocations. Republican People's Party (CHP) Deputy Chairman Orhan Sarıbal noted that the 2026 inflation target was revised from 16% to 28.4%, a change he described as “nearly 100 percent.” He also warned of the impact on farmers following a 30% reduction in the agricultural budget, arguing the plan fails to protect them from rising fuel and fertilizer costs. Additionally, Gökhan Günaydın of the YENİ Party condemned the program as a “desperate struggle,” citing rising wealth inequality. ~~Conversely, Finance Minister Şimşek maintains~~ In support of the ~~OVP is~~ program’s objectives, President Recep Tayyip Erdoğan issued a ~~necessary phase of macroeconomic balancing intended~~ circular regarding the 2027-2029 Public Investment Program. This directive aims to ~~achieve price stability through coordinated policies.~~ maximize savings in public spending and prioritize investments that complement private sector activities. Key infrastructure priorities include transport and railway projects, specifically the Bandırma-Bursa-Osmaneli line, as well as the Mersin-Gaziantep, Ankara-Izmir, and Halkalı-Kapıkule lines.

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