Turkey's 2027-2029 Mid-Term Economic Blueprint: A Collaborative Vision with Business

Turkey’s 2027-2029 Mid‑Term Economic Plan, announced by Vice President Cevdet Yılmaz on September 6, will present a comprehensive framework that will shape the country’s economic future.

Roadmap: Turkey’s Economic Trajectory for 2027-2029

■Macroeconomic Targets: Inflation below 4%, growth goal 3.5%

■Policy Framework: Fixed interest rates, currency stability

■Structural Reform Agenda: Simplification of the tax system, acceleration of business registration processes

Business‑Centric Dialogue: Key Takeaways from Consultations

■Participatory Approach: Collaboration among industry, finance, and civil society representatives

■Feedback Mechanism: Inclusion of companies’ sustainability goals and digital transformation demands

■Coordination: Tight collaboration between the Strategy and Budget Office and the Ministry of Finance and Treasury

Policies and Reforms: Major Changes in Detail

■Tax Reform: Reduction of VAT from 18% to 17%

■Investment Incentives: 20% tax credit on R&D expenditures

■Energy Policy: Increase the share of renewable energy investments by 30%

Economic Expectations: Investor Perspectives

■Stock Market Impact: Increased transparency and long‑term planning may lift BIST 100 by 2‑3%

■Currency Market: Exchange rate stability, keeping the TL within an 8‑10% volatility band

■Investor Confidence: Reduced policy uncertainty could boost foreign investment flows by 5‑7%

Conclusion: Outlook for 2027‑2029

■Economic Stability: Controlling inflation and achieving growth targets

■Competitive Edge: Accelerated business processes strengthen the entrepreneurial ecosystem

■Sustainability: Renewable energy investments reduce the carbon footprint

Aylin Güneş: Markets will view this new Mid‑Term Plan as a strategic shift for the long term. Especially the tax and investment incentives will positively affect dividend payouts and buyback programs, prompting me to recalibrate long‑term growth positions in my portfolios.