Ashgabat, Turkmenistan, June 16
By Huseyn Hasanov – Trend:
The economy of Turkmenistan is forecasted to growth slightly, from 6.2 percent in 2016 to 6.5 percent in 2017, the Turkmen government said in a message citing the International Monetary Fund’s (IMF) data.
The IMF has issued a press release following the results of final consultation of 2017 with Turkmenistan. The report has not been published on the IMF website yet.
Turkmenistan, which is a big producer of natural gas, continues to adapt to difficult external conditions, including steadily low oil and gas prices and a slowdown in economic activity in partner countries, according to the press release.
Growth rates remain stable – more than 6 percent over the past two years, thanks to the increase in volumes of natural gas exports to China, expansionary loan policy and industrial policy to substitute import and development of export.
Deficit of the state budget is at a low level, 1.25 percent of GDP in 2016, but the current account deficit has increased up to 21 percent of GDP, according to the press release.
The inflation forecast for 2017 will remain moderate, at around 6 percent, and the state budget is expected to remain close to balanced.
Meanwhile, it is forecasted that the external deficit will remain significant, at about 11 percent in the medium term, while maintaining low oil and gas prices and very high volumes of public investment.
Turkmenistan is one of main players in the energy market of the Caspian region and ranks fourth in the world for its gas reserves. The country is studying opportunities to export its gas to Europe and Asia.