BAKU, Azerbaijan, Sept. 22
By Klavdiya Romakayeva - Trend:
ADB revised its economic growth outlook for developing Asia, projecting Turkmenistan’s gas export to rise in 2021,Trend reports citing the ADB (Asian Development Bank).
According to the information, the government of Turkmenistan reported economic growth accelerating from 5.9 percent in the first half of 2020 to 6.1 percent in the first half of 2021.
On the supply side, it estimated 15.2 percent growth in the industry including construction, and 5.2 percent growth in agriculture, offsetting sluggish growth in services.
On the demand side, rising public investment and net exports aided growth, while the adverse effects of inflation on real household income limited private consumption. Even as COVID-19 pandemic containment measures affected trade volume, gas exports to China began to recover.
According to the revised forecast of ADB for growth projections for 2021 and 2022 in Turkmenistan, monetary policy remained focused on controlling inflation by limiting cash in circulation and maintaining the official exchange rate at 3.5 Turkmen manat per US dollar, supplemented by price controls and the distribution of selected foodstuffs at subsidized prices.
“While the gap between official and parallel market exchange rates narrowed somewhat during the first half of 2021, import restrictions and resulting shortages have continued to boost inflation for food and other goods, including medicines”, the report says.
The government reported a 37.2 percent increase in the value of natural gas exports in the first half of 2021, mainly from higher global energy prices.
ADB notes that exports should rise this year in the country and next with continued recovery in gas shipments to China—and as full vaccination of the population, expected in the second half of 2021, allows gradual easing of trade and transport restrictions.
ADB also forecasts a wider current account surplus in 2021 and forecasts a small deficit in 2022, in anticipation of some relaxation of import controls.
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