Turkiye’s 2025-2027 Medium-Term Program aims to curb inflation while sustaining growth and employment, boosting long-term social welfare.
The Turkish government is set to unveil its latest Medium-Term Program (MTP) for the 2025-2027 period tomorrow. The program, which has been in development for some time, outlines the nation’s economic strategy for the next three years, with a focus on reducing inflation, maintaining growth and employment, and ultimately enhancing long-term social welfare.
Key Objectives of the New MTP
According to Vice President Cevdet Yılmaz, who recently spoke on TRT Haber, the fundamental goals of the Medium-Term Program remain consistent with previous iterations. However, the updated MTP introduces several critical adjustments:
- Inflation Reduction:
The program’s primary objective is to bring down inflation, which has been a persistent challenge for Turkiye in recent years. - Sustaining Growth and Employment:
The MTP emphasizes the importance of maintaining economic growth and protecting employment levels, ensuring that the broader population benefits from economic stability. - Enhancing Social Welfare:
A key focus of the program is to increase long-term social welfare by achieving a balanced and sustainable economic environment.
Significant Updates in the 2025-2027 MTP
Vice President Yılmaz highlighted three main areas of updates in the new program:
- Macroeconomic Indicators:
The MTP will include revised macroeconomic values, covering everything from growth and GDP to exports and tourism. The program will also update inflation figures, budget sizes, and projections for budget deficits, expenditures, and revenues. - Three-Pronged Strategy:
The government plans to implement a three-pronged strategy in the MTP, focusing on monetary policies, fiscal policies, and structural reforms. These elements are designed to work together to stabilize the economy and foster sustainable growth. - Increased Predictability:
The updated MTP aims to increase predictability in the economy by presenting a realistic and consistent program that can be shared with the public and relevant stakeholders.
What to Expect in the New MTP
The updated Medium-Term Program is expected to offer a comprehensive roadmap for Turkiye’s economic future. Key areas to watch include:
- Monetary Policies:
The MTP will outline the central bank’s approach to managing inflation and supporting economic stability through effective monetary policies. - Fiscal Policies:
The program will detail the government’s budgetary plans, including projected revenues and expenditures, as well as strategies for managing the budget deficit. - Structural Reforms:
Structural reforms will play a crucial role in the MTP, focusing on enhancing the efficiency and competitiveness of the Turkish economy.
The Announcement and Implementation
The new MTP is scheduled to be announced tomorrow morning, with a detailed presentation planned by members of the Economic Coordination Council. The program will be signed by President Erdoğan and published in the Official Gazette before it is shared with the public.
The government is committed to implementing the MTP in a manner that is transparent and inclusive, ensuring that all relevant parties are informed and involved in the process.
Understanding Turkiye’s 2025-2027 Medium-Term Program
Turkiye’s 2025-2027 Medium-Term Program represents a strategic effort to address the country’s most pressing economic challenges while laying the groundwork for sustainable growth and improved social welfare. With its focus on reducing inflation, sustaining growth, and enhancing predictability, the MTP is poised to play a vital role in shaping Turkiye’s economic future.
As the details of the new MTP are revealed, it will be crucial to monitor how these strategies are implemented and their impact on the broader economy. The program’s success will depend on the government’s ability to execute its plans effectively, ensuring that Turkiye remains on a stable and prosperous path in the years to come.
Source: Trthaber / Prepared by Irem Yildiz