Medium-term economic prospects remain favorable in Turkmenistan

Business Materials 15 May 2014 17:56 (UTC +04:00)

Ashgabat, Turkmenistan, May 15

By Huseyn Hasanov- Trend:

The medium-term growth prospects of Turkmenistan's economy remain favorable within the current model of development in terms of growth of gross domestic product (GDP), fiscal revenues and external sustainability, taking into account the gas reserves in the country, according to the analytical article of the Eurasian Development Bank (EDB).

EDB is an international financial institution established by Russia and Kazakhstan in January 2006. A number of CIS countries are also participants of the bank.

The Turkmen leadership faces many difficult challenges in terms of long-term perspectives. It tries to take them into account in its policy, according to the report.

"The special attention is paid to the statements of strengthening the role of the private sector in the economy, the adoption of the privatization program for 2013-2016, great interest in joining the World Trade Organization (WTO)," according to a statement. "The focus was also on the efforts on developing the non-bank component of the financial system, the desire on holding the monetary reform, reduction of subsidies (including gas)."

Turkmenistan's GDP growth increased and hit 10.8 percent on an annualized basis in the fourth quarter of 2013, while 10.2 percent as of the year, according to the bank.

"Against the background of less favorable external environment, (slowdown in Russia and China, the weak recovery in Europe, the decline in natural gas prices), the state's economic policy was the main factor of the growth," EDB said.

Moreover, the Eurasian Development Bank pointed out that the growth of capital investments amounted to 7.1 percent (46.4 percent of GDP) as of 2013.

The inflation level in Turkmenistan stood at six percent as of 2013, according to the Eurasian Development Bank.

The EDB underscored that in the long-term perspective, the country's government faces many challenges that it attempts to integrate in its policy.

Currently, Turkmenistan is able to export natural gas to China, Iran and Russia.

Turkmenistan plans to construct Trans-Caspian gas pipeline under the Caspian Sea to Europe through Azerbaijan and Trans-Afghanistan gas pipeline to India through Pakistan.

Turkmenistan ranks fourth for its natural gas reserves after Russia, Iran and Qatar, according to BP report. The largest fields of Turkmenistan are concentrated in the Mary region in the country's east with total resources estimated by local geologists and British GCA at 26.2 trillion cubic meters.

Edited by C.N.