Turkmenistan: Economy#
Turkmenistan is largely a desert country with intensive agriculture in irrigated oases and significant natural gas and oil resources. The two largest crops are cotton, most of which is produced for export, and wheat, which is domestically consumed. Although agriculture accounts for roughly 14% of GDP, it continues to employ nearly half of the country's workforce. Hydrocarbon exports (mainly natural gas) make up 31% of Turkmenistan’s GDP, with 60% of gas exports going to China and the remainder to Russia and Iran. Ashgabat has explored two initiatives to bring gas to new markets: a trans-Caspian pipeline that would carry gas to Europe and the Turkmenistan-Afghanistan-Pakistan-India gas pipeline. Both face major financing and security hurdles and are unlikely to be completed soon.Turkmenistan’s autocratic governments under presidents NIYAZOW (1991-2006) and BERDIMUHAMEDOW (since 2007) have made little progress improving the business climate, privatizing state-owned industries, and combatting corruption, limiting economic development outside the energy sector. High energy prices in the mid-2000s allowed the government to undertake extensive development and social spending, including providing heavy utility subsidies.
Low energy prices since mid-2014 are hampering Turkmenistan’s economic growth and reducing government revenues. The government has cut subsidies in several areas, and wage arrears have increased. In January 2014, the Central Bank of Turkmenistan devalued the manat by 19%, and downward pressure on the currency continues. Turkmenistan continues to report GDP growth of nearly 10% per year and claims substantial foreign currency reserves, but non-transparent data limit international institutions’ ability to verify this information.
Economic Facts#
| GDP (purchasing power parity) | $94.77 billion (2016 est.) $89.95 billion (2015 est.) $84.46 billion (2014 est.) note: data are in 2016 dollars |
|---|---|
| GDP (official exchange rate) | $36.57 billion (2015 est.) |
| GDP - real growth rate | 5.4% (2016 est.) 6.5% (2015 est.) 10.3% (2014 est.) |
| GDP - per capita (PPP) | $17,300 (2016 est.) $16,700 (2015 est.) $15,900 (2014 est.) note: data are in 2016 dollars |
| Gross national saving | 20.1% of GDP (2016 est.) 9.6% of GDP (2015 est.) -22.1% of GDP (2014 est.) |
| GDP - composition, by end use | household consumption: 50% government consumption: 10.9% investment in fixed capital: 26.7% investment in inventories: 0.1% exports of goods and services: 33.9% imports of goods and services: -21.6% (2016 est.) |
| GDP - composition, by sector of origin | agriculture: 13.2% industry: 47.7% services: 39.2% (2016 est.) |
| Agriculture - products | cotton, grain, melons; livestock |
| Industries | natural gas, oil, petroleum products, textiles, food processing |
| Industrial production growth rate | 1% (2016 est.) |
| Labor force | 2.305 million (2013 est.) |
| Labor force - by occupation | agriculture: 48.2% industry: 14% services: 37.8% (2004 est.) |
| Unemployment rate | 11% (2014 est.) 10.6% (2013) |
| Population below poverty line | 0.2% (2012 est.) |
| Household income or consumption by percentage share | lowest 10%: 2.6% highest 10%: 31.7% (1998) |
| Distribution of family income - Gini index | 40.8 (1998) |
| Budget | revenues: $3.765 billion expenditures: $4.753 billion (2016 est.) |
| Taxes and other revenues | 10.3% of GDP (2016 est.) |
| Budget surplus (+) or deficit (-) | -2.7% of GDP (2016 est.) |
| Fiscal year | calendar year |
| Inflation rate (consumer prices) | 11% (2016 est.) 16% (2015 est.) |
| Central bank discount rate | 5% (31 December 2014) 5% (31 December 2013) |
| Stock of narrow money | $1.326 billion (31 December 2015 est.) $1.255 billion (31 December 2014 est.) |
| Stock of broad money | $12.23 billion (31 December 2015 est.) $5.632 billion (31 December 2014 est.) |
| Stock of domestic credit | $28.4 billion (31 December 2015 est.) $13.09 billion (31 December 2014 est.) |
| Market value of publicly traded shares | $NA |
| Current account balance | -$6.78 billion (2016 est.) -$3.695 billion (2015 est.) |
| Exports | $8.756 billion (2016 est.) $10.38 billion (2015 est.) |
| Exports - commodities | gas, crude oil, petrochemicals, textiles, cotton fiber |
| Exports - partners | China 68.6%, Turkey 4.9% (2015) |
| Imports | $7.467 billion (2016 est.) $8.198 billion (2015 est.) |
| Imports - commodities | machinery and equipment, chemicals, foodstuffs |
| Imports - partners | Turkey 24.9%, Russia 12.3%, China 10.9%, UAE 9.1%, Kazakhstan 5.1%, Germany 4.6%, Iran 4.4% (2015) |
| Reserves of foreign exchange and gold | $10.9 billion (31 December 2016 est.) $13.62 billion (31 December 2015 est.) |
| Debt - external | $502.8 million (31 December 2016 est.) $454.7 million (31 December 2015 est.) |
| Stock of direct foreign investment - at home | $3.061 billion (2013 est.) $3.117 billion (2012 est.) |
| Exchange rates | Turkmen manat (TMM) per US dollar - 4.25 (2016 est.) 3.5 (2015 est.) 3.5 (2014 est.) 2.85 (2013 est.) 2.85 (2012 est.) |