Türkiye raises defense spending 229% under new medium-term economy road map

Turkish Vice President Cevdet Yilmaz said Sunday that Türkiye aims to develop its own technologies in the defense industry and produce high added value as the country increases defense spending by 229%.

“In the defense industry, we aim for a Türkiye that develops its own technology and produces high added value,” Yilmaz said.

“We are increasing defense spending by 229%,” he added.

Yilmaz made the remarks during the presentation of Türkiye’s new Medium-Term Program (MTP), which sets out the country’s three-year economic road map for the 2027-2029 period.

Under the program, Türkiye’s 2026 growth forecast was lowered to 3.3%, while the year-end inflation expectation was raised to 28.4%.

Economic growth is targeted to reach 4.2% in 2027, 4.6% in 2028, and 5% in 2029.

Inflation is expected to gradually decline to 16% in 2027, 9% in 2028, and 8% in 2029.

Turkish Vice President Cevdet Yilmaz speaks to reporters during the Turkish Press Federation's program in Ankara, Türkiye, June 26, 2026. (AA Photo)

VP says inflation enters downward trend

Speaking at the presentation, Yilmaz said significant progress had been made in the fight against inflation.

He said inflation, which had risen as high as 75.5% in May 2024, had entered a clear downward trend with the policies implemented.

The updated program targets inflation to fall to 28.4% by the end of 2026.

It also projects growth to accelerate gradually, from an updated 3.3% forecast for 2026 to 5% in 2029.

More to Read

Türkiye puts Istanbul bridges in privatization program for operating rights

Business 1 min read

Ukrainian attacks nearly cut Türkiye’s Russian oil imports as energy bill soars over 30%

Business 1 min read

Istanbul inflation eases to 1.7% in August as food prices stall

Business 1 min read

Global risks affect Turkish economy

Yilmaz said the global economy had recently entered a new period in which economic, technological and geopolitical developments were intertwined.

“The global economy has recently been going through a new period in which economic, technological and geopolitical developments are intertwined, predictability has decreased, and risks have risen to historically high levels,” he said.

“The Turkish economy is, of course, not independent of the developments taking place in the world and in our region,” he added.

Yilmaz said the direct and indirect effects of war in the region were being felt in many areas, including energy and commodity prices, global trade, the inflation outlook and growth expectations.

September 06, 2026 01:25 PM GMT+03:00