Azerbaijan, Baku, Oct. 29 / Trend A.Yusifzade /
According to the last report by the European Bank for Reconstruction and Development (EBRD), the growth rate of real GDP in Turkmenistan is projected at 11 percent in 2010, and 12 percent in 2011, according to the October updates the regional macro-economic prospects in countries of operations. Last year, real GDP growth in Turkmenistan was 6.1 percent.
The increase in the Bank's forecasts for Turkmenistan was caused by high volumes of gas exports to Iran and China, although the volumes of supplies of Turkmen gas to Russia have decreased.
In July this year the Bank allocated Turkmenistan $4 million to support the development of small and medium enterprises.
The EBRD program envisages financing capital needs of private companies that have limited access to long-term financing. Senagat JSCB and Turkmenbashi State Commercial Bank were included in the program and each will receive $2 million for lending to local companies.
"The banking sector in Turkmenistan is largely under state control. Given that the share of bank credit to the private sector makes up only one percent of the GDP in Turkmenistan, the EBRD will increase funding, supporting the commitment of the Turkmen government to reform the banking sector," the EBRD report says.
The private sector in Turkmenistan is developing rapidly thanks to the continuation of reforms and favorable business climate for small and medium enterprises.
Since the beginning of activities in Turkmenistan, the share of EBRD investments in the financial, energy sectors and in infrastructure in the country amounted to about $110 million, which mobilized additional investments amounting to $390 million.
According to the latest report of the International Monetary Fund (IMF) "Regional Economic Outlook: Middle East and Central Asia", in 2010, Turkmenistan's GDP growth is forecasted at 9.4 percent, which is one of the best indicators among the Central Asia countries. Last year, real GDP growth of Turkmenistan reached 6.1 percent, and in 2011 is expected to reach 11.5 percent.
According to IMF forecasts, that this year the amount of nominal GDP of Turkmenistan is projected worth $19.9 billion compared to $18.5 billion in 2009, and next year it will increase to $23.5 billion.
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