Indicator of average income of the population in Turkmenistan

Indicator of average income of the population in Turkmenistan

The COVID-19 pandemic, which continues in the world, has a negative impact on the global economy and living standards of the population. Macroeconomic indicators reflect this, the most important of which is the gross domestic product (GDP) per capita – an indicator of the economic activity level and the life quality of the population in separate countries and regions for a specific period. It is determined by dividing the national GDP by the number of inhabitants.

According to the International Monetary Fund (IMF), in 2020, per capita GDP, which is considered as an indicator of average incomes of population, will be $10.95 thousand in the world, while in developed countries – $46.35 thousand, and in emerging market countries and developing countries – $5.17 thousand.

This figure is slightly lower for the Central Asia and Caucasus region – $4.81 thousand, but it consists of very different figures for each of the countries in the region.

So, Kazakhstan’s GDP for each capita is $8.78 thousands, Turkmenistan follows with indicator of $8.07 thousands, not as scheduled – Uzbekistan ($1.76 thousand), Kyrgyzstan ($1.15 thousand) and Tajikistan ($833,55).

For comparison with the nearest major economy, we can give the Russian index, which is $9.97 thousands.

From these data, it appears that in terms of GDP per capita, Turkmenistan is one of the leaders among the five Central Asian countries, more than one and a half times ahead of the overall indicator for the Central Asia and Caucasus region, and has a real chance of reaching the global level in the observable future.

Given the fact that by the end of 2020, the country expects an increase in national GDP by 5.8%, and the next year’s State Budget includes a growth rate of 6.2%, we can bargain for a corresponding increase in the per capita GDP.

Proceeding from the expected economic growth and social obligations of the state, Turkmenistan plans to increase the amount of salaries, pensions, state benefits, and scholarships for students and trainees by 10% in the forthcoming year.

Ogulgozel REJEPOVA