Government’s 3-year program expects inflation to ease to 24.9% in 2023 after hitting 65% this year
Turkiye’s economy is projected to grow 5% this and next year, according to the country’s medium-term economic program published in the Official Gazette on Sunday.
The gross domestic product growth is foreseen to accelerate to 5.5% for the following two years – 2024 and 2025, the Turkish economy’s roadmap for 2023-2025 showed.
Thus, the average GDP growth rate target stands at 5.3% for the three-year period.
The government is aiming for the GDP to hit $867 billion in 2023, $952 billion in 2024 and top $1 trillion by the end of the program.
The Turkish economy grew 7.6% year-on-year in the second quarter of this year and 7.5% in the first quarter.
Türkiye’s annual consumer inflation rate, which currently stands at its peak, is estimated to reach 65% by the end of this year, then ease to 24.9% in 2023.
In July, the country’s annual inflation rate rose for the 14th consecutive month to 79.6%, its highest level since September 1998.
The medium-term program targets 13.8% and 9.9% inflation rates for 2024 and 2025, respectively.
The country’s current account deficit is expected to stand at $47.3 billion in 2023, then decline to $22 billion next year, $13.7 billion in 2024, and $10 billion in 2025.
The government projects an unemployment rate of 10.4% next year, before bringing it down to 9.9% in 2024 and 9.6% the following year.
Turkiye’s jobless rate fell to 10.3% in June,the lowest since 2018, according to the latest data from the country’s statistical authority.
The government’s new economic model has prioritized growth, investment, production, employment, and exports with a policy of low interest rates.