Türkiye’s updated medium-term program to be announced on Sept. 5
A man ties a Turkish flag to a pole on top of a restaurant in Istanbul, Türkiye, on December 20, 2021. (AP Photo by Francisco Seco)
Türkiye’s Vice President Cevdet Yilmaz announced that Türkiye’s updated medium-term program (MTP) for 2025-27 will be released on Sept. 5, 2024.
Speaking on Turkish public broadcaster TRT, Yilmaz detailed the government’s strategy for the upcoming years, emphasizing that the MTP has been shaped through extensive consultations with various sectors of society.
Revised economic growth figures
Vice President Yilmaz said that the recent economic performance, where Türkiye’s economy showed a 2.5% growth in the second quarter of 2024. This follows the Turkish Statistical Institute’s (TurkStat) revision of the 2023 growth rate from 4.5% to 5.1% and the first quarter of 2024 from 5.7% to 5.3%.
“Our growth base has increased, affecting this year’s figures slightly negatively. However, we recorded an average growth of 3.8% for the first half of 2024,” Yilmaz explained, noting the balanced nature of this growth, particularly driven by net exports, in line with the medium-term program’s goals.
‘Türkiye to navigate global and regional challenges’
Yilmaz discussed the global economic landscape and regional geopolitical tensions, including the ongoing Russia-Ukraine conflict and the crisis in Gaza. Despite these challenges, Türkiye’s economy has shown resilience, particularly in recovering from the significant earthquake that impacted 11 provinces and 14 million people.
“These figures demonstrate that our economy has swiftly recovered from the earthquake’s impact. However, our rehabilitation efforts continue rapidly,” Yilmaz remarked.
Türkiye’s updated medium-term program
Yilmaz confirmed that the updated MTP would include revised macroeconomic indicators, budgetary frameworks, and structural reforms. The program reportedly will prioritize reducing inflation, addressing the earthquake’s aftermath, and sustaining economic growth and employment.
“We have been working on the updated MTP for a long time, incorporating technical studies and consultations with all relevant sectors,” Yilmaz said.
Türkiye’s employment growth and future economic outlook
Looking ahead, Yilmaz projected that Türkiye would see an increase of over 1 million jobs in 2024, underscoring the importance of employment as a key economic indicator. “The growth in employment shows that society is benefiting more from economic growth,” he stated.
Yilmaz also highlighted Türkiye’s political stability as a critical factor for continued economic success. “The most important factor that differentiates Türkiye positively in this global environment is political stability and trust,” he noted, emphasizing that the absence of elections until 2028 will allow for long-term reforms.
Türkiye’s inflation targets and economic stability
Addressing inflation, Yilmaz reiterated the government’s commitment to reducing inflation rates, predicting a significant decline in the second half of 2024. “We expect to see inflation drop to the 40s by the end of the year, with a target of bringing it below 20% by 2025,” Yilmaz said.
