The Turkish government’s Medium-Term Program (MTP) for 2026-2028 outlines a strategy of intensified austerity measures aimed at addressing the country’s economic challenges. The plan prioritizes reducing inflation to single digits by the end of the period, targeting a 3.6% inflation rate in 2028. This will be achieved through fiscal discipline, including significant cuts in public spending and increased taxes.
The MTP forecasts slower economic growth in the coming years, with GDP growth projected to be 4% in 2026, declining to 3.9% in 2027 and 4.5% in 2028. Unemployment is expected to remain high, hovering around 10% during the program period. The government aims to lower the current account deficit by boosting exports and attracting foreign investment.
Wage suppression and reduced social programs are key components of the austerity measures. The MTP emphasizes the need for structural reforms to improve competitiveness, attract investment, and increase productivity. Privatization of state-owned assets may be accelerated. The program’s core objective is to stabilize the Turkish economy, reduce inflation, and improve fiscal stability through stringent fiscal policies and structural adjustments, inevitably impacting the living standards of the Turkish working class.
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