IMF forecasts economic growth in Turkmenistan
The International Monetary Fund forecasts that the economy will grow in Turkmenistan despite the external factors. According to the 2017 Consultation Press Release for Turkmenistan issued by the International Monetary Fund, over the next few years, Turkmenistan’s macroeconomic indicators are expected to remain uneven, including the continuing growth, moderate inflation and balanced budget. The IMF forecasts modest growth acceleration from 6.2 percent last year to 6.5 percent in 2017. As predicted, inflation will be moderate running at 6 percent. At the same time, the external deficit is projected to remain considerable, standing at 11 percent in the midterm, given low oil and gas prices and high levels of state investment. The IMF notes that Turkmenistan, a big natural gas producer, continues to adapt to external factors, including persistently low oil and gas prices, a decline in economic activities in the trading partner countries. The press release says that the growth rates remain stable, standing at over 6 percent within the past two years. This has been contributed by increased natural gas exports to China, the extensive credit policy and industrial import substitution and export development policy. The national budget is low, running at 11/4 percent of GDP last year; however the current account deficit has climbed to 21 percent of GDP. Like all oil and gas countries, Turkmenistan currently faces with some economic difficulties given the energy prices dropping on the world market.
