ADB’s new report predict stability in Turkmenistan’s economy
ADB forecasts Turkmenistan’s GDP will grow at 6.5% in 2018 and 6.7% in 2019. The projections has been given in recently presented statistical report Asian Development Outlook 2018.
The further acceleration of the economy is conditioned by improved outlook for energy process and expected increase in hydrocarbon production and exports, public investments, industry.
Moreover, the public investments will continue to play important role in implementation of sectoral programs, provided for under Presidential Program for social and economic development for 2018-2024. This document envisages major industrial projects in mining, chemicals, and metallurgy, as well as to develop regional social infrastructure. The program stipulates further reforms to facilitate the transition to a market economy, encourage private activity and to speed the transformation of public enterprises into joint stock companies and private firms.
According to report , the stable supply will be maintained by industry. Industry’s growth is projected at 8-10% in 2018 and 2019.
The double-digit indicators will also be observed in services sector.
Annual growth in credit to private firms projected at 18%.
Price controls and stringent foreign exchange regulations will be maintained to limit inflation, says the outlook.
The trade balance will grow steadily, remaining positive. Import substitution drive will remain in focus of the governmental agenda. According to estimates of ADB’s economists, the exports of Turkmen goods will exceed the merchandise imports by US $ 1.4 billion in 2019.
The report points out the necessity of further development of education system in the line with requirements of the diversifying economy for highly skilled and technically qualified labor force.
The importance of education is also stressed in current development programs. Turkmenistan has realized various substantial reforms in education system such as huge investments in education infrastructure, opening of new higher institutions, a transition to compulsory 12-year secondary education, introduction of new study programs and curricula aimed to adjust the education system with international standards.
ADO-2018 also mentions that “greater investment in post-secondary and vocational education would promote agriculture with higher value added and help develop high-tech industries outside of the hydrocarbon economy, including services.”
Moreover, increased expenditure, both from government sources and through public–private partnerships, will improve the quality and relevance of higher education and focus on strengthening research and development to foster innovation.
The annual Asian Development Outlook analyzes economic performance in the past year and offers forecasts for the next couple of years for the 45 economies in Asia and the Pacific that make up developing Asia.
