Hydrocarbon raw material markets affect Turkmenistan's economy
Ashgabat, Turkmenistan, Nov.8 By Huseyn Hasanov- Trend: Turkmen economy, despite the favorable economic forecasts, is influenced by the situation on the hydrocarbon raw material markets, said the report of the International Monetary Fund (IMF).
The economic growth in Turkmenistan remains stable and is expected to reach 10-11 percent growth in 2014 at the expense of increasing the volume of gas export to China and major state investments, according to the report. The report also said that inflation is likely to remain at a low level within small single digits. An IMF mission visited Turkmenistan in early November 2014.
The expert group has assessed the macroeconomic situation and discussed the priorities of economic policy with senior government officials and representatives of the private sector of the country. IMF staff has expressed the fund's willingness to continue supporting the government of Turkmenistan in the implementation of reforms in the form of consultation on policy and capacity building issues, including the area of national accounts statistics, monetary and credit, fiscal policy in future.
Turkmenistan is at a transitional stage of its development. In recent years, an article on transition to a market economy for the first time appeared in a revised constitution of the country. Turkmenistan holds one of the key positions in the region for the supply of natural gas. Its importers are China, Russia and Iran. At the same time, the government of Turkmenistan adopted a policy of diversification of the economy.
In recent years, the sphere of oil and gas processing, textile, cotton refining industry and production of construction materials is developing, carpet weaving is also export-oriented. Turkmenistan has held several reforms in monetary policy, such as the denomination of the national currency, exchange rate unification. In 2014, the country has moved to international accounting standards.