Turkmenistan, Ashgabat, July 2 / Trend H. Hasanov /
The Turkmen state budget in 2010 can be executed with a surplus, the International Monetary Fund (IMF) said.
An IMF mission headed by Veronica Bacalu was in Ashgabat June 16-29. It held consultations with the Turkmen government. They discussed issues such as assessment of the Turkmen economy, short-and medium-term prospects of its development.
Turkmenistan's natural gas export, oil and oil products bring the main income to the state treasury. The country managed to enter the alternative routes bypassing Russia for the first time. A gas pipeline to China was commissioned in December 2009. Earlier this year an extra branch to Iran began to operate. At the same time, gas exports to Russia, suspended in April 2009 because of the accident at the gas main, has been recently restored.
An additional pipeline to Russia (the Caspian Sea - via Kazakhstan), Europe (Nabucco - through the Caspian Sea via Azerbaijan) and India (through the Trans-Afghan pipeline, Pakistan) is among the discussed projects.
Turkmenistan ranks fourth on natural gas reserves in the world. The IMF stated that the growth in export volumes of gas in response to the recovery of demand in the global economy for existing and new pipelines can result to an impressive growth of the Turkmen economy in 2010. According to IMF projections, the fiscal balance remains in surplus
The information states that reforms successfully implemented over the past two years in the monetary and financial areas, gave their results.
Real GDP growth in 2009 was strong. The government adhered to investment policy. Foreign direct investments were record ones. The credibility to the national currency and banking system have caused the improved access to foreign currency and stability of exchange rate. Inflation remained at a low level.
The press-release said that continuation of macroeconomic reforms is important to further diversify and strengthen the economy.
IMF welcomes the ongoing social reforms in education and health, and the efforts made by the authorities to support development of small and medium enterprises.
"The International Monetary Fund is ready to continue close cooperation with Turkmenistan. It supports the authorities in their efforts to improve macroeconomic management, convert the financial sector and expand private sector activities," the message said.