IMF has again positively evaluated Turkmenistan’s development prospects

During November 4-10, an International Monetary Fund delegation led by Mr. Björn Rotter was on a working visit to Turkmenistan. During the delegation’s staying in Ashgabat, representatives of the authoritative international organization held the meetings in the country’s ministries and agencies, as well as had meetings with representatives of the national parliament and private sector. The discussions were focused on the issues related to evaluation of the macroeconomic situation and Turkmenistan’s economy growth prospects.

Following the outcomes of the mission, Mr. Björn Rotter made a statement that high rates of economic growth had been recorded in Turkmenistan over the last decade. Having noted an advance in the implementation of the comprehensive reform program for diversification of the economy carried out under the leadership of President Gurbanguly Berdymuhamedov, the IMF representatives applauded the fact that our country’s official authorities had used to advantage the period of high oil and gas prices to more than double per capita income through the hydrocarbon sector well-planned development. The measure enabled to realize large-scale state investments, including in the social sphere. The statement also indicated the tasks of priority specified by Turkmenistan for the diversification and development of the private sector to create more promising and demand-driven jobs for the country’s youth.

Stressing that since 2014, three shock factors have led to the deterioration of the external economic conditions for the Central Asian countries, the IMF mission has welcomed the decisive countermeasures of the economic policy taken by our country’s official bodies. Increased budget performance efficiency, reduction of budget expenditures in response to the declining revenues, strengthening of the regulation and control principles in the banking sector were named among the effective instruments employed. As was noted, the economic diversification strategy combined with the devaluation in January 2015 attached a powerful impetus to the development of some industries, in particular, the gas processing industry and agroindustrial sector.

According to the IMF experts, “the considerable resources accumulated in the Foreign Currency Fund and the Stabilization Fund will enable Turkmenistan to adapt to the ongoing challenges and will contribute to maintaining the high GDP growth rates – higher than in other countries of the region – most likely during a long-term period of lower energy prices”.

On the whole, having expressed support for Turkmenistan’s efforts aimed at improving the macroeconomic management policy, reforming the financial sector, and expanding the private sector’s businesses to ensure long-term sustainable growth, the International Monetary Fund mission has confirmed its intention to continue constructive dialogue with our country. As was stressed, the IMF is ready to render assistance to the ongoing reforms by offering recommendations on the economic policy issues and the potential-unleashing programs, including in the field of macroeconomic statistics, monetary operations and fiscal policy.

 

State News Agency of Turkmenistan (TDH)