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Cevdet Yilmaz Unveils Turkey's New Economic Roadmap and Significant Defense Spending Increase

Turkish Vice President Cevdet Yilmaz announced a new Medium-Term Program (MTP) for 2027-2029, outlining the country's economic roadmap and key policy priorities. The administration announced a 229% increase in defense spending over the next three years to develop domestic technologies and produce high-value products. This spending represents the largest increase among the seven priority areas in the program, supporting projects like the mass production of the TF-Kaan fighter jet and the Bayraktar Kızılelma unmanned aircraft. The program also includes significant upward revisions to inflation forecasts. The administration announced a year-end inflation forecast of 28.4% for 2026, a substantial increase from the previous 16% projection. The upward revision is attributed to the direct and indirect effects of the war in the Middle East, which is estimated to have impacted inflation by approximately seven percentage points. Additionally, the MTP aims to improve employment through expanded child care services, flexible working arrangements, and reskilling programs. The government plans to strengthen links between social assistance and active labor-market programs to improve employability for those receiving social assistance.

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