The economic growth of Turkmenistan is carried out on the basis of the national and state programs for short and long term periods. Today, Turkmenistan has the diversified, multifunctional economy presented by enterprises of power industry, oil and gas production, oil-processing, chemical and petrochemical field, mechanical engineering and metal-processing, objects for producing building materials, light and food industry.
At the end of 2017, dynamic economic growth was ensured in all sectors, the well-being of the people was steadily increasing.
For the social and economic development of the country in 2018-2024 it is planned to allocate more than 240 billion manat.
Big finances are invested to national economy, namely 50 billion US dollars.
The growth rate of Turkmenistan’s GDP in the year of 2017 made up 6,5%. By the outcomes of the last year, the revenue of the main financial plan was executed to 101.8 percent level while the expenditure was 96.4 percent.
At the same time, the size of wages has increased. All the wages, pensions, welfare payments and students’ stipends were financed timely and in full volume. Average salaries in big and medium enterprises of the country were 8.8 percent higher than in 2016.
According to the President’s Decree of July 2017, from January 1, 2018 the salaries of personnel of the entities financed from the Budget, self-sustained enterprises and non-governmental organizations as well as pensions and state allowances, students scholarships were increased on 10 percent. In addition, the increment of all types of social benefits in the same volumes is planned for the next seven years. This fact is explained by stable development of the economy and financial and social stability in the country.
Turkmenistan actively develops its foreign economic relations with other countries. Today Turkmenistan has foreign trade relations with 119 countries of the world.
Improvement of financial reporting is the main coordinating instrument for the establishment of the cooperation with different states of the world and attraction of foreign investments to the economy of the country. In this context, it is necessary to mention the adoption in December 2017 of a Resolution, according to which all entities and organizations (excluding crediting institutions) regardless of the ownership were assigned to implement international accounting and financial reporting standards from January 1, 2019.
At present, in the country, under the leadership of President Gurbanguly Berdimuhamedov, grandiose reforms are under way in the framework of the national and state programs, which are aimed at the diversification of the national economy and at the achievement of innovative character.
Traditional sectors have considerably grown over the recent years: oil and gas complex, power engineering, agriculture, construction, transport and communications. At the same time, a lot of work is being carried out for the formation of new sectors of the economy: chemical, textile and building materials industries, telecommunications and other high-tech spheres.
Special programs worked out such as the “National program for socio-economic development of the country for 2012-2016.” They were targeted at the further enhancement of the above named branches for medium-term prospect.
Possessing the world's fourth confirmed natural gas reserves, as well as taking into account the peculiarities of the geographical location, Turkmenistan implements the policy of diversification of its international cooperation, particularly in the energy sector, on the basis of an equal partner access to the sources of Turkmen hydrocarbons and their means of delivery. This involves the creation of multivariate transportation pipeline infrastructure for the export of Turkmen energy resources to the international energy markets.
In 2017 the growth rate of production of natural and associated gas was 102 percent comparing with 2016, export of gas – 101.1 percent and investment developments – 107 percent. The country, along with the traditional routes, and with its partners launched the construction of its gas pipeline on the route of Turkmenistan-Afghanistan-Pakistan-India (TAPI). The construction of Turkmenistan-Afghanistan-Pakistan-India gas line on the territory of our country is carried out according to the schedule. On February 23 of this year, the construction of this gas pipeline on the Afghan territory was launched.
As a result of practical measures, the share of foreign investments to Turkmen economy steadily grows every year and number of joint ventures is increased. Development of giant gas deposit Galkynysh, construction of gas processing complex for production of low-pressure linear polyethylene, plants for production of liquid fuel from natural gas, for gas-to-polymers processing, for polyethylene and polypropylene production with ethane cracking unit, complex for production of concentrated phosphorous fertilisers are among large investment projects implemented with the participation of the leading foreign companies.
Turkmenistan is highly interested in the projects on export of its energy to the European direction. Along with the geographical diversification, the structural diversification of the energy sector of Turkmenistan is being gradually implemented through the creation of new, primarily, process industries, based on hydrocarbon raw material. Turkmenistan believes that the joint implementation of international transport projects in Central Asia and the Caspian basin are also important, taking into account the unique geographical location in the region.
The power system of Turkmenistan is associated with the combined power system of Central Asia and is capable of exporting large amounts of electricity to Afghanistan, Iran, Turkey, Tajikistan and other countries in the region. The potential of the energy industry in the country is constantly increasing: the construction of new power plants and power lines, the reconstruction and modernization of existing power facilities.
The investment activity of the economy has led to the rapid growth of the construction industry of Turkmenistan. In addition to large-scale public construction projects, industrial, recreational, cultural facilities, such as the creation of the Avaza National Tourist Zone, the large-scale construction of dwelling houses are being carried out within the National program for the reform of social and living conditions in villages, towns, cities, districts and etrap centers for the period up to 2020.
Within the framework of the congruent programs, construction of industrial and social facilities is being carried out in all regions of the country. Construction of numerous facilities including 48.5 percent of production and 51.5 percent of social and cultural facilities were carried out in 2017. At present time, around 1700 large facilities to total amount above 42 billion US dollars are under construction in the country. 10 social facilities, 623.6 km of engineering networks, 1214300 sq. m. of living were built for the last year under this programme. At present, time the construction of 31 water treatment complexes, 59 social facilities, 352 sq. m. of living as well as engineering and communication systems are under construction.
On 7th February 2018, the facilities of the next phase of construction of capital living complex Tyaze Zaman were ceremonially opened.
Turkmenistan attaches great importance to the development of transport and communication system (railways and roads, sea and river ports, pipelines) as an essential part of infrastructure for the sustainable development of the country’s economy.
Turkmenistan is turning into the world's largest international transit-transport and telecommunication corridor of global importance. This is especially actual in 2018, under the slogan "Turkmenistan - the heart of the Great Silk Road". Our country, located at the crossroads of the main trade routes of the continent, was and remains the most important link in this ancient caravan route. In its innovative revival, Turkmenistan is playing an increasingly active and significant role. In this context, the dynamic development of the sphere of transport and communications serves the formation of new socio-economic conditions, the expansion of business and mutually beneficial cooperation, of friendship and brotherhood, both with neighboring countries and with all interested countries and nations of the world.
Large-scale international projects in the transport sphere initiated by President of Turkmenistan Gurbanguly Berdimuhamedov are designed to give a significant impulse to regional and interregional economic cooperation.
А new international airport in Ashgabat, and the first phase of railway Turkmenistan-Afghanistan-Tajikistan were put into operation in 2016.
On 26 February 2018 a new international airport was put into exploitation in Turkmenabat.
On May 2, 2018, the opening of a new Turkmenbashi international sea port, as well as the International Forum on Transport and the profile exhibition were held in the National Tourist Zone Avaza.
Powerful economic potential leads to an annual increase in the volume of cargo transportation. Share of automobile transport in 2017 in total volume of cargo and passenger traffic was 101 percent. It should be noted that in 2017 the volume of cargo traffic by water transport reached 152 percent. Only over the past year, passenger traffic in the State Service of Maritime and River Transport amounted to 154.3 percent. Turkmenistan is one of the largest international transit centers of railway transportation by the corridors of “North-South,” “West-East”. Formation of important logistics corridors on these lines is very important in the context of realization of the objectives of restoration of the Great Silk Road in new format and in connection of two economic poles of Eurasia. This project also implies the opportunity of connection to international transport system in southern and eastern directions with the entry to China, India, Pakistan and Asian Pacific countries.
In his speech at the session of the Council of the Elders in October 2017, the President of Turkmenistan outlined the expansion of use of advanced space technologies in different branches of national economy of the country among the main objectives in the nearest future. According to the decision of the Head of the State, 1 billion 300 million manats will be invested to the development of national space sphere and improvement of its activity in 2018 – 2024.
Turkmenistan has great opportunities for the development of different sectors of chemical and petrochemical industries, including the use of resources of already developed fields and industrial development of new deposits of chemical raw stock.
In 2009, the construction of ore-mining and processing complex were launched on the outskirts of Garlyk settlement in Lebap province, where a range of deposits of potassium salts were opened in the ore-mining region Gaurdak-Koytendag. The construction of a mining complex on the production of potash fertilizers, symbolizes the birth of new mining branch for the Turkmen economy, based on the vast resource base. Thus, Garlyk deposit of potassium salts is capable to produce fertilizers in the volume of 1-1.5 million tons annually and in the future that figure will reach up to 4 millions. The cost of the first stage of the complex is about 1 billion USD. On March 31, 2017, during the visit of the President of the Republic of Belarus to Turkmenistan, the President of Turkmenistan Gurbanguly Berdimuhamedov and the President of the Republic of Belarus Alexander Lukashenko took part in the solemn ceremony of commissioning a mining and processing enterprise for potash fertilizers, built in Garlyk in Lebap province.
The construction of a new carbamide production plant in Garabogaz entered the final stage. It has the great importance for strengthening the rapidly developing gas chemical industry, and in general, the national economy. This year, it is planned to put into operation the carbamide production plant with a capacity of 1 million 155 thousand tons of products per year.
The opening ceremony of new administration building of the Union of Industrialists and Entrepreneurs and the facilities for production of glass production in Ovadandepe in Ahal velayat was held on 14th February 2018.
The main objectives of the country’s agricultural sector is to meet food demands of population, provide processing industry with raw materials, increase production efficiency, form new economic relations and consistently strengthen food security.
Today Turkmenistan is fully self-sufficient in basic foodstuffs. Comparing with the same indicator of the previous year, the production increased to 6.4 percent in general. By the outcomes of 2017, the volume of retail trade turnover increased to 19 percent comparing with 2016. The total volume of trade turnover reached 4 891 400 000 manats. Comparing with 2016, the growth rate is equal to 12.8 percent.
In 2017, the export volumes of domestic goods increased to 6.6 percent, while the import is reduced to almost 21 percent.
In 2011, Turkmenistan became one of the grain exporting countries. 217,000 tons are set for sale, including 150 tons of wheat, and the rest - in the form of flour. During the years of independence export-oriented textile industry with modern high-tech equipment was created in Turkmenistan, 60 textile complexes and enterprises with the most advanced and efficient equipment were built and commissioned into operation. Currently, about 80 percent of manufactured textile products are exported to the European Union, the USA, Canada, Russia, Turkey, Hungary, China, the Baltics, Ukraine and other countries.
It is necessary to note the fact that election of our country to three UN structures – Science and Technologies Committee for Development in 2017-2020, Commission on Population and Development in 2016-2020 and Social Development Committee in 2017-2021 at the session of the United Nations Economic and Social Council, is a bright evidence of international support of the measures taken by the Government of Turkmenistan for stable growth of national economy and adaptation to unfavourable external conditions.