Turkey’s new medium-term program published in the Official Journal

The presidential decree approving Turkey’s new medium-term program (MTP), which revises the country’s economic objectives for the period 2023-2025, was published in the Official Gazette on Sunday.

Prepared jointly by the Ministry of Treasury and Finance and the Strategy and Budget Department, the program provides for a drop in inflation to 65% this year, 24.9% in 2023, 13.8% in 2024 and 9 .9% in 2025.

Meanwhile, it puts unemployment at 10.4% next year, 9.9% in 2024 and 9.6% in 2025.

According to the program, the Turkish economy is expected to grow by 5% in 2023 and 5.5% in 2024 and 2025.

Exports are also expected to increase, reaching $255 billion by the end of 2022, $265 billion in 2023, $285 billion in 2024, and $305 billion in 2025.

Strong domestic demand and buoyant exports helped Turkey’s economy extend its period of prosperity and grow more than expected in the second quarter of the year, according to official data.

The government’s new economic program has prioritized production, growth and exports with a low interest rate policy, aiming to achieve a current account surplus that should eventually stabilize the Turkish lira and calm inflation .

Rising prices helped boost spending while the falling pound helped boost exports. Exports of goods and services increased by 16.4% in the second quarter compared to a year ago in the chain-linked volume index, while these imports increased by 5.8%.

Annual GDP rose to $828 billion in the second quarter from $793 billion in the previous three-month period, the data showed.

Household consumption added 13.6 percentage points to growth and external demand boosted it by 2.7 points, according to bankers’ calculations.

The growth rate makes Turkey the second fastest growing economy in the G-20 after Saudi Arabia, whose GDP grew 11.8% in the second quarter.

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