BAKU, Azerbaijan, June 27
By Jeila Aliyeva - Trend:
The global outbreak of COVID-19 pandemic and lower energy prices might have a significant impact on Turkmen economy, International Monetary Fund (IMF) Mission Chief for Turkmenistan Natalia Tamirisa told Trend.
“Lower external demand and hydrocarbon revenues, increased health spending needs and disruptions in global and regional supply chains are weighing on the economic prospects,” noted Tamirisa.
“The IMF projected real GDP at 1.8 percent and inflation at 8 percent in 2020,” she said adding that for 2021, Turkmenistan’s real GDP growth is forecasted to be 6.4 percent.
Tamirisa stressed that Turkmenistan has a pegged exchange rate supported by broad exchange controls on international transactions and payments in line with the country’s import substitution objectives.
“Significant overvaluation and foreign currency rationing are among the factors that weigh on private investment and competitiveness of the country’s nonhydrocarbon exports,” noted the IMF Mission Chief for Turkmenistan.
Furthermore, the country should improve the competitiveness and convertibility of the Turkmen manat to achieve sustainable economic growth, she added.
“Adjustment should be carefully sequenced to ensure macro-financial stability and supported by appropriate measures to protect the vulnerable,” said Tamirisa.
Touching upon Turkmenistan’s cooperation with IMF, she emphasized that the International Monetary Fund continues to support Turkmenistan through policy advice as well as capacity building activities.
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