ASHGABAT (TCA) — Turkmenistan’s GDP growth rate is expected to exceed 10 percent this year, President of Turkmenistan Gurbanguly Berdymukhammedov said at a joint meeting of the Cabinet of Ministers and the State Security Council last Friday, the State News Agency of Turkmenistan reported.
The head of state said that almost all the activities planned for 2014 had been completed. As an example the President mentioned the commissioning of the North-South transnational railroad and the launch of construction projects of industrial facilities.
Turkmenistan has been one of the fastest growing economies in recent years. The most important sector of the economy is oil and natural gas extraction, which accounts for more than 60 percent of the country’s GDP.
Turkmenistan’s GDP rose in the first half of 2014 by 10.3%, which underperformed expectations. On the supply side, a 9.0% expansion in industry was the main factor responsible, as gas output increased by 12.0% and construction by 15.0%. On the demand side, growth was sustained by an 8.3% rise in investment and a 14.7% rise in gas exports. Growth is expected to remain strong, as large public investment projects are implemented and new processing facilities at the Galkynysh gas field raise production. The GDP growth is expected to accelerate to 11.5% in 2015, according to ADB’s Asian Development Outlook (ADO) 2014.
Using new facilities at the Galkynysh gas field, exports are expected to rise steadily in 2015 to fill long-term gas contracts with China. However, anticipated heavy imports of technological goods and services for the hydrocarbon and construction sectors are expected to hold the current account surplus well below the 2.0% forecast in ADO 2014. For 2015, the forecast of the current account surplus is narrowed by half a percentage point, despite expectations that higher gas exports to China will continue to offset possible declines in demand from Russia and Iran.