Economy

The economic growth of Turkmenistan is carried out based on the national and state programs for short and long-term periods. Today, Turkmenistan has the diversified, multifunctional economy presented by enterprises of power industry, oil and gas production, oil-processing, chemical and petrochemical field, mechanical engineering and metal-processing, objects for producing building materials, light and food industry.

At the end of 2018, dynamic economic growth was ensured in all sectors, the well-being of the people was steadily increasing.

For the social and economic development of the country in 2018-2024 it is planned to allocate more than 240 billion manat.

The growth rate of Turkmenistan’s GDP in the year of 2018 made up 6,2 %.

At the same time, the size of wages has increased. All the wages, pensions, welfare payments and students’ stipends were financed timely and in full volume. According to the President’s Decree of 2018, from January 1, 2019 the salaries of personnel of the entities financed from the Budget, self-sustained enterprises and non-governmental organizations as well as pensions and state allowances, students scholarships were increased on 10 percent. In addition, the increment of all types of social benefits in the same volumes is planned for the next seven years. This fact is explained by stable development of the economy and financial and social stability in the country.

The Resolution of the People’s Council in regulation of the provision of the population of Turkmenistan with electricity, gas, water and salt from 2019 was one of important events of the last year.

Adoption of the Concept of development of digital economy in Turkmenistan in 2019 0 2025 was an important event in 2018. It is planned to implement the concept in three stages (the 1st one in 2019, the 2nd in 2020 – 2023 and the 3rd in 20224 – 2025).

Turkmenistan actively develops its foreign economic relations with other countries. Today Turkmenistan has foreign trade relations with 119 countries of the world.

Improvement of financial reporting is the main coordinating instrument for the establishment of the cooperation with different states of the world and attraction of foreign investments to the economy of the country. In this context, it is necessary to mention the adoption in December 2017 of a Resolution, according to which all entities and organizations (excluding crediting institutions) regardless of the ownership were assigned to implement international accounting and financial reporting standards from January 1, 2019. In the result, 2018 has been marked with the development of the infrastructure of electronic banking, growth of non-cash payments, increment of banks capitalization, crediting of medium and small entrepreneurship, provision of new banking production.

Same as in previous years, Turkmenistan pays great attention to the expansion of the cooperation with the International Monetary Fund, the World Bank, European Bank for Reconstruction and Development, Asian Development Bank, Islamic Development Bank and other.

At present, in the country, under the leadership of President Gurbanguly Berdimuhamedov, grandiose reforms are under way in the framework of the national and state programs, which are aimed at the diversification of the national economy and at the achievement of innovative character.

Traditional sectors have considerably grown over the recent years: oil and gas complex, power engineering, agriculture, construction, transport and communications. At the same time, a lot of work is being carried out for the formation of new sectors of the economy: chemical, textile and building materials industries, telecommunications and other high-tech spheres.

Special programs worked out such as the “National program for socio-economic development of the country for 2018-2024.” They were targeted at the further enhancement of the above named branches for medium-term prospect.

Possessing the world's fourth confirmed natural gas reserves, as well as taking into account the peculiarities of the geographical location, Turkmenistan implements the policy of diversification of its international cooperation, particularly in the energy sector, on the basis of an equal partner access to the sources of Turkmen hydrocarbons and their means of delivery. This involves the creation of multivariate transportation pipeline infrastructure for the export of Turkmen energy resources to the international energy markets.

The country, along with the traditional routes, and with its partners launched the construction of its gas pipeline on the route of Turkmenistan-Afghanistan-Pakistan-India (TAPI). The construction of Turkmenistan-Afghanistan-Pakistan-India gas line on the territory of our country is carried out according to the schedule. On February 23, 2018, the construction of this gas pipeline on the Afghan territory was launched.

As a result of practical measures, the share of foreign investments to Turkmen economy steadily grows every year and number of joint ventures is increased. Development of giant gas deposit Galkynysh, construction of gas processing complex for production of low-pressure linear polyethylene, plants for production of liquid fuel from natural gas, for gas-to-polymers processing, for polyethylene and polypropylene production with ethane cracking unit, complex for production of concentrated phosphorous fertilisers are among large investment projects implemented with the participation of the leading foreign companies.

Turkmenistan is highly interested in the projects on export of its energy to the European direction. Along with the geographical diversification, the structural diversification of the energy sector of Turkmenistan is being gradually implemented through the creation of new, primarily, process industries, based on hydrocarbon raw material. Turkmenistan believes that the joint implementation of international transport projects in Central Asia and the Caspian basin are also important, taking into account the unique geographical location in the region.

The power system of Turkmenistan is associated with the combined power system of Central Asia and is capable of exporting large amounts of electricity to Afghanistan, Iran, Turkey, Tajikistan and other countries in the region. The potential of the energy industry in the country is constantly increasing: the construction of new power plants and power lines, the reconstruction and modernization of existing power facilities. By 2024, the total volume of electricity produced in the country will be increased to 33 billion kilowatt-hours, which is 27.2 percent more compared to 2018, the volume of its supplies abroad will increase several times.

The investment activity of the economy has led to the rapid growth of the construction industry of Turkmenistan. In addition to large-scale public construction projects, industrial, recreational, cultural facilities, such as the creation of the Avaza National Tourist Zone, the large-scale construction of dwelling houses are being carried out within the National program for the reform of social and living conditions in villages, towns, cities, districts and etrap centers for the period up to 2020.

Within the framework of the congruent programs, construction of industrial and social facilities is being carried out in all regions of the country. During 2018, various buildings were constructed. The volume of drawn investments from all sources of financing was 40.3 billion manats, 63.7 percent of which were used for construction of production and 36.3 percent for building of social and cultural facilities. 1,704 facilities to the amount of around of 10 billion dollars have been built and put into operation.

Another complex of residential estate Tayze Zaman in Bagtiyarlyk etrp of the capital, multifunctional clinic and living complex in Turkmenabat, Lebap Velayat, child hospital in Mary, aquapark with recreation centre and health improving facility in Avaza National tourist zone were among large-scale constructions in 2018. Business complex in Ashgabat, glass production facility in Ahal Velayat, combined cycle power station on the territory of Mary State Power Station, Garabogazkarbamid plant, petrochemical complex for production of polyethylene and polypropylene in Balkan Velayat have been opened.

Opening of Serhetabat – Turgundy railroad, Turkmenabat International Airport, Turkmenbashy International Seaport became convincing evidence of the restoration of the Silk Road in new format in our country.

Turkmenistan attaches great importance to the development of transport and communication system (railways and roads, sea and river ports, pipelines) as an essential part of infrastructure for the sustainable development of the country’s economy.

Turkmenistan is turning into the world's largest international transit-transport and telecommunication corridor of global importance. In this context, the dynamic development of the sphere of transport and communications serves the formation of new socio-economic conditions, the expansion of business and mutually beneficial cooperation, of friendship and brotherhood, both with neighboring countries and with all interested countries and nations of the world.

Large-scale international projects in the transport sphere initiated by President of Turkmenistan Gurbanguly Berdimuhamedov are designed to give a significant impulse to regional and interregional economic cooperation.

А new international airport in Ashgabat, and the first phase of railway Turkmenistan-Afghanistan-Tajikistan were put into operation in 2016.

Turkmenistan is one of the largest international transit centers of railway transportation by the corridors of “North-South,” “West-East”.

In his speech at the session of the Council of the Elders in October 2017, the President of Turkmenistan outlined the expansion of use of advanced space technologies in different branches of national economy of the country among the main objectives in the nearest future. According to the decision of the Head of the State, 1 billion 300 million manats will be invested to the development of national space sphere and improvement of its activity in 2018 – 2024.

Turkmenistan has great opportunities for the development of different sectors of chemical and petrochemical industries, including the use of resources of already developed fields and industrial development of new deposits of chemical raw stock.

In 2009, the construction of ore-mining and processing complex were launched on the outskirts of Garlyk settlement in Lebap province, where a range of deposits of potassium salts were opened in the ore-mining region Gaurdak-Koytendag. The construction of a mining complex on the production of potash fertilizers, symbolizes the birth of new mining branch for the Turkmen economy, based on the vast resource base. Thus, Garlyk deposit of potassium salts is capable to produce fertilizers in the volume of 1-1.5 million tons annually and in the future that figure will reach up to 4 millions. The cost of the first stage of the complex is about 1 billion USD. On March 31, 2017, during the visit of the President of the Republic of Belarus to Turkmenistan, the President of Turkmenistan Gurbanguly Berdimuhamedov and the President of the Republic of Belarus Alexander Lukashenko took part in the solemn ceremony of commissioning a mining and processing enterprise for potash fertilizers, built in Garlyk in Lebap province.

The opening ceremony of new administration building of the Union of Industrialists and Entrepreneurs and the facilities for production of glass production in Ovadandepe in Ahal velayat was held on 14th February 2018.

The main objectives of the country’s agricultural sector is to meet food demands of population, provide processing industry with raw materials, increase production efficiency, form new economic relations and consistently strengthen food security.

Today Turkmenistan is fully self-sufficient in basic foodstuffs. Comparing with the same indicator of the previous year, the production increased to 5 percent in general. By the outcomes of 2018, the volume of retail trade turnover increased to 19,6 percent comparing with 2017.

In 2018, exports of Turkmenistan compared to 2017 increased by almost 50 percent. Production export volumes to foreign countries exceeded 11,200,000,000 US dollars.

During the years of independence export-oriented textile industry with modern high-tech equipment was created in Turkmenistan, 60 textile complexes and enterprises with the most advanced and efficient equipment were built and commissioned into operation. Currently, about 80 percent of manufactured textile products are exported to the European Union, the USA, Canada, Russia, Turkey, Hungary, China, the Baltics, Ukraine and other countries.

It is necessary to note the fact that election of our country to three UN structures – Science and Technologies Committee for Development in 2017-2020, Commission on Population and Development in 2016-2020 and Social Development Committee in 2017-2021 at the session of the United Nations Economic and Social Council, is a bright evidence of international support of the measures taken by the Government of Turkmenistan for stable growth of national economy and adaptation to unfavourable external conditions.