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New Economic Program
of Turkey

Turkey will have a stronger economy with the new economic plan. Treasury and Finance Minister Berat Albayrak announced the 'New Economic Program'. The theme of the program is “Transformation begins.” It was determined as the Medium Term Program. The plan, will cover the years 2020-2022 showing the critical steps the government will take in the economy.

 

According to Albayrak, the world is going through serious breaks both in economy and politics. The implementation of the necessary policies and measures to make Turkey strong is very important and urgent for the government.

 

The first and foremost priority of the government in the new economic program is to cope with inflation. According to Albayrak, the inflation rate should be lowered below 5%. The country's inflation targets are set as 8.5% next year, 6% in 2021 and 4.9% in 2022. The other critical issue included in the new economic program is about unemployment. According to the official data, unemployment rate expectation is 11.9 % for 2020 and 10.8 % for 2021. Growth expectation for the year 2020 is 3.5 % while growth expectation of 2021 is 5 %. Minister Albayrak also stated that they aim to save 30 % in the public sector with the new economy plan.

 

Under these targets, the coordination of money and fiscal policies will be prioritized as the government will keep to back the Central Bank in its efforts against inflation. In addition, the new developments in the construction sector and improving the borrowing conditions of the citizens will make a positive contribution to employment within the framework of the new economic program.

 

Minister Albayrak said that “This year's theme in the program is ‘change begins’. We are preparing to close this year with positive growth. We increase exports and we reduce imports. In the second half of the year, deferred private consumption will accelerate. All macro indicators are before the currency attack. We have successfully implemented the balancing target. After continuing this process, we will start the process of change. 44 out of 112 actions are now implemented.” Another significant step included in the new economic program is about tax issue. Albayrak stated that they began to take tax reform steps that will pave the way for less tax on the people who have less income.

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