Türkiye Lifts Defense Spending 229% as 2026 Growth Forecast Falls to 3.3%
Updated
Updated · Türkiye Today · Sep 6
Türkiye Lifts Defense Spending 229% as 2026 Growth Forecast Falls to 3.3%
3 articles · Updated · Türkiye Today · Sep 6
Summary
Türkiye said its new 2027-2029 Medium-Term Program raises defense spending by 229%, with Vice President Cevdet Yilmaz framing the increase as a push to build domestic defense technology and higher-value production.
The same program cut the 2026 growth forecast to 3.3% and lifted the year-end inflation forecast to 28.4%, reflecting a tougher economic backdrop.
Yilmaz said inflation has eased from a 75.5% peak in May 2024 and is projected to decline to 16% in 2027, 9% in 2028 and 8% in 2029, while growth is targeted to recover to 5% by 2029.
He linked the revisions to a more volatile global environment, saying regional war is feeding through to energy and commodity prices, trade, inflation and growth expectations.
As tourism revenues plummet and energy costs soar, is Türkiye's ambitious two-trillion-dollar economic dream for 2029 already slipping out of reach?
Will domestic policy missteps or external geopolitical shocks ultimately dictate the fate of Türkiye's painful battle against deeply entrenched inflation?