September 14, 2022
Türkiye’s new Medium-Term Program (MTP) for 2023-2025, jointly prepared by the Ministry of Treasury and Finance and the Presidency of the Republic of Türkiye Presidency of Strategy and Budget, was published in the Official Gazette on September 4, 2022.
Commenting on the new MTP, the Minister of Treasury and Finance Nureddin Nebati quoted that the program was precisely designed in the light of Türkiye’s 11th Development Plan as well as the economic developments in Türkiye and the world. “While preparing the program, we focused on the Türkiye Economy Model, which prioritizes GDP growth, employment generation, high value-added production, and export-oriented sustainable growth. We expect an average GDP growth of 5.3 percent and an additional employment of 2.7 million people over the next three years,” Minister Nebati added.
The new MTP expects Türkiye’s GDP to grow by 5 percent in 2023, and by 5.5 percent in 2024 and 2025. Moreover, GDP per capita is predicted to surpass the USD 10,000-threshold and reach USD 10,071 by 2023, USD 10,931 in 2024, and USD 12,091 in 2025.
The unemployment rate is expected to gradually decline to 10.4 percent in 2023, 9.9 percent in 2024, and 9.6 percent in 2025.
While annual inflation in Türkiye is expected to be 65 percent by the end of this year, it is expected to fall starting from next year, receding to 24.9 percent in 2023, to 13.8 percent in 2024, and finally to a single-digit inflation of 9.9 percent by 2025.
Türkiye will continue to set new export records in the coming years with an export target of USD 305 billion by the end of 2025.
Meanwhile, tourism revenues were revised to new records, with USD 45 billion in 2023, USD 55 billion in 2024, and USD 62 billion in 2025.
The new MTP also projects the current account balance / GDP ratio and the central government budget deficit to GDP ratio to recede to 0.9 percent and 1.5 percent respectively by the end of 2025.
Source: Republic of Türkiye Investment Office
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