Türkiye’s 2025-2027 Medium-Term Program: Key Economic Priorities and Reforms

Türkiye’s Medium-Term Program (MTP) for 2025-2027 sets a strategic roadmap aimed at ensuring sustainable economic growth, price stability, fiscal discipline, and fostering innovations in key sectors. As Türkiye continues to position itself as a rising global economic power, the MTP outlines specific reforms and targets to be achieved over the next three years. Below is an overview of the program’s most important components.

Economic Growth and Stability

One of the key objectives of the MTP is to achieve sustainable growth without triggering inflationary pressures. The program highlights the importance of structural reforms aimed at enhancing productivity, competitiveness, and innovation across various sectors, including agriculture, industry, and services.

Türkiye aims to increase domestic production and reduce its reliance on imports by fostering investments in strategic sectors like manufacturing, renewable energy, and technology. Growth is expected to be driven by private sector investments supported by a strong public infrastructure framework.

Inflation and Price Stability

Taming inflation is another central goal of the Medium-Term Program. The MTP seeks to bring inflation down to single digits through a combination of monetary policies, fiscal discipline, and income policies.

To achieve price stability, the Central Bank of Türkiye will continue to follow tight monetary policies, while fiscal measures will ensure public spending remains efficient. The aim is to reduce inflation expectations and ensure economic predictability, which is essential for both local and international investors.

Fiscal Discipline and Public Investment

Maintaining fiscal discipline is a crucial component of the MTP. The government is committed to managing public debt responsibly, aiming to reduce the budget deficit as a percentage of GDP. To achieve this, the program emphasizes increasing public revenues through enhanced tax collection mechanisms and reducing unnecessary expenditures.

At the same time, the program allocates significant resources to critical public investments, particularly in infrastructure, energy, and technology. These investments will create new opportunities for growth while ensuring long-term sustainability.

Employment and Labor Market Reforms

The MTP also places significant emphasis on increasing employment and improving the labor market. By introducing active labor market policies, Türkiye aims to boost the participation rate, particularly among women and young people. The program seeks to reduce the informal economy and create a more inclusive job market through flexible employment models.

A special focus is placed on education and skills development, ensuring that the Turkish workforce is prepared to meet the demands of a rapidly evolving economic landscape. Vocational training and programs geared toward technological competencies will play a vital role in aligning labor market supply with industry demands.

Advancing Green and Digital Economies

Another critical priority of the MTP is the advancement of both green and digital economies. As the world transitions towards sustainable practices, Türkiye is determined to enhance its green economy by supporting the development of renewable energy projects and improving energy efficiency. Türkiye’s commitment to reducing carbon emissions and aligning with international environmental standards is also highlighted in the program.

On the digital front, Türkiye aims to become a leader in financial technologies (fintech) and digital innovation. The Istanbul Financial Center (IFC) is central to this vision, serving as a hub for digital transformation in finance. The MTP includes plans to strengthen the fintech ecosystem and promote innovations like the digital Turkish lira.

Strengthening Türkiye’s Financial Ecosystem

The MTP envisions the Istanbul Financial Center as the heart of Türkiye’s strategy to develop a competitive financial ecosystem. By diversifying financial products and services, strengthening the regulatory framework, and advancing Islamic finance, Türkiye aims to position itself as a leading financial hub on the international stage.

With a focus on financial stability and innovation, the program outlines specific steps to attract foreign investment and ensure that Türkiye remains an attractive destination for international capital. The development of Islamic finance will also be a key driver, with the IFC positioned to become a global hub in participation finance.

Türkiye’s Medium-Term Program (2025-2027) sets the foundation for the country's economic development over the next three years. By focusing on sustainable growth, inflation control, fiscal discipline, and the green and digital economy, Türkiye is taking decisive steps to strengthen its position in the international markets. The program also highlights the importance of financial innovation, with the Istanbul Financial Center playing a pivotal role in transforming Türkiye's financial sector.

As these reforms and initiatives are implemented, Türkiye is well-positioned to become a leading economic force in the region and beyond.