Turkish Vice President Cevdet Yılmaz presented the Medium-Term Economic Program for 2027–2029. Its priorities include reducing inflation, fiscal discipline, investment, employment, and exports.

Inflation has fallen from 75.5% in May 2024 to 31.5% in August 2026. The government forecasts 28.4% by the end of 2026 and 8% in 2029. GDP growth is expected to accelerate from 3.3% to 5%, while nominal GDP is projected to reach $2.2 trillion.

At the same time, Ankara is sharply increasing defense spending, from $17 billion in 2026 to $31.66 billion in 2027, $37.58 billion in 2028, and $42.67 billion in 2029. Over three years, this amounts to approximately $111.9 billion, excluding other sources of defense-industry financing.

The funds will support the KAAN fighter aircraft, Altay main battle tank, Bayraktar TB3, KIZILELMA, Steel Dome, radars, electronic warfare, and command-and-control systems. ASELSAN’s contract portfolio in 2026 amounts to approximately $6.5 billion.

Turkey is turning its defense industry not only into an instrument of rearmament but also into a driver of industrial development, localization, employment, and exports. Defense contracts are simultaneously expanding technological cooperation and Ankara’s foreign-policy influence.

In effect, Turkey is developing a model in which the defense industry becomes one of the key instruments of its economic and foreign policy.