Economic Coordination Board Sets 2026 Roadmap, Vows Firm Fight Against Inflation

Turkey’s Economic Coordination Board (EKK) has held its first meeting of 2026, outlining a comprehensive economic roadmap focused on price stability, sustainable growth, and structural transformation. In a detailed statement released after the meeting, the Board emphasized that the economic program implemented with determination has delivered tangible gains and that these achievements will be reinforced and made permanent in the coming year.

According to the statement, 2025 marked a year in which economic progress accelerated, building on earlier reforms. Turkey’s foreign exchange reserves reached historic highs, achieving reserve adequacy in line with international standards. Confidence in Turkish lira-denominated assets strengthened, while the Foreign Exchange Protected Deposit (KKM) scheme—described as a significant contingent liability—was fully phased out.

The EKK highlighted that Turkey’s country risk premium has fallen to its lowest level since May 2018, easing access to external financing for both the public and private sectors. As borrowing costs declined, financing conditions improved, supporting economic activity. With a more balanced outlook between consumption and investment, the economy recorded annual growth of 3.7% in the first three quarters of 2025.

Inflation Declines as De-Inflation Continues

One of the most prominent themes of the statement was inflation. The Board noted that the disinflation process is ongoing, with annual inflation declining to 30.89%, the lowest level in the past four years. Core developments also showed improvement, as basic goods inflation fell to 17.7%.

Despite heavy spending related to earthquake recovery, fiscal discipline was preserved, and public debt levels remained low, reinforcing macroeconomic stability. Meanwhile, the labor market continued to show resilience, with the unemployment rate remaining in single digits for 31 consecutive months.

The EKK reaffirmed that the fight against inflation will continue until lasting price stability is achieved. The statement underlined that this effort will remain multi-dimensional, coordinated, and resolute, combining monetary and fiscal policies with supply-side measures.

A Coordinated Policy Framework for 2026

Looking ahead to 2026, the Board stressed that monetary and fiscal policies will be implemented in close coordination to sustain disinflation. However, inflation control will not rely solely on demand-side tools. Instead, authorities will continue to deploy supply-oriented measures and structural reforms, particularly in food, housing, energy, and transportation sectors that have a direct impact on cost-of-living dynamics.

The EKK also noted that as earthquake-related expenditures decline, new fiscal space will emerge. This space will be used to align administered and guided prices more closely with inflation targets, reinforcing the overall price stability framework.

Energy Security and Current Account Balance

Improving the current account balance on a lasting basis remains a central objective. The statement emphasized that energy supply security and the reduction of external dependence are critical to achieving this goal. Accordingly, investments that enhance the effective use of domestic energy and natural resources, while expanding renewable energy capacity, will be prioritized.

The Board pointed to a legislative amendment adopted in July 2025, which simplified permit and approval processes to accelerate renewable energy investments. Türkiye’s strong position in geothermal energy was also highlighted. As the leading European country in installed geothermal capacity, Türkiye aims to elevate this advantage to a global leadership position, with ongoing efforts to expand utilization and technological capabilities.

Agriculture, Climate, and Food Security

Climate change risks and rising global food demand were identified as factors that make productivity, quality, and sustainability-focused agricultural policies unavoidable. In response, the EKK reaffirmed its commitment to planned and contract-based production, wider adoption of modern farm technologies, and increased use of renewable energy in farming.

Investments in irrigation infrastructure and the expansion of organized agricultural zones were also listed among top priorities. These measures aim to strengthen food supply chains, improve rural productivity, and support long-term food security in an increasingly volatile climate environment.

Logistics and Transport Infrastructure

Türkiye’s geopolitical location and strong infrastructure continue to position it as a key player in international transportation. The EKK stated that infrastructure investments are being prioritized through a holistic approach designed to boost competitiveness and production capacity.

A major focus is the integration of industrial zones and ports with the national railway network. In this context, a prioritized rail connection program linking production centers directly to ports is scheduled for completion. Once implemented, this initiative is expected to significantly enhance access to domestic and international markets, reduce logistics costs, and strengthen export performance.

Key Topics Discussed at the Meeting

During the 2026 kickoff meeting, the EKK reviewed several strategic areas in detail. These included the current state of logistics infrastructure, particularly rail–port connections, and the identification of additional steps needed to improve efficiency.

The Board also assessed Türkiye’s geothermal energy resources, their usage areas, and the country’s overall geothermal potential. In addition, recent developments in the agricultural sector and the effectiveness of agricultural support mechanisms were examined to ensure alignment with broader economic objectives.

Commitment to the “Türkiye Century” Vision

Concluding the statement, the EKK reaffirmed its commitment to the “Türkiye Century” vision, stressing that the goal is not only to preserve recent economic gains but to make them permanent. By advancing economic transformation, increasing productivity, and strengthening competitiveness, authorities aim to place the economy on a more resilient and sustainable footing.