Economy of Turkmenistan

Mother Earth Travel > Country Index > Turkmenistan > Map Economy History

Economy - overview: Turkmenistan is largely desert country with intensive agriculture in irrigated oases and huge gas (fifth largest reserves in the world) and oil resources. One-half of its irrigated land is planted in cotton, making it the world's tenth largest producer. Until the end of 1993, Turkmenistan had experienced less economic disruption than other former Soviet states because its economy received a boost from higher prices for oil and gas and a sharp increase in hard currency earnings. In 1994, Russia's refusal to export Turkmen gas to hard currency markets and mounting debts of its major customers in the former USSR for gas deliveries contributed to a sharp fall in industrial production and caused the budget to shift from a surplus to a slight deficit. With an authoritarian ex-communist regime in power and a tribally based social structure, Turkmenistan has taken a cautious approach to economic reform, hoping to use gas and cotton sales to sustain its inefficient economy. Privatization goals remain limited. In 1998-2000, Turkmenistan suffered from the continued lack of adequate export routes for natural gas and from obligations on extensive short-term external debt. At the same time, however, total exports rose sharply because of higher international oil and gas prices. Prospects in the near future are discouraging because of widespread internal poverty and the burden of foreign debt. IMF assistance would seem to be necessary, yet the government is not as yet ready to accept IMF requirements. Turkmenistan's 1999 deal to ship 20 billion cubic meters (bcm) of natural gas through Russia's Gazprom pipeline helped alleviate the 2000 fiscal shortfall. Inadequate fiscal restraint and the tenuous nature of Turkmenistan's 2001 gas deals, combined with a lack of economic reform, will limit progress in the near term.

GDP: purchasing power parity - $19.6 billion (2000 est.)
GDP - real growth rate: 9% (1999 est.), 16% (2000 est.)
GDP - per capita: purchasing power parity - $4,300 (2000 est.)
GDP - composition by sector:
agriculture: 10%
industry: 62%
services: 28% (1997 est.)
Household income or consumption by percentage share:
lowest 10%: 2.7%
highest 10%: 26.9% (1993)
Inflation rate (consumer prices): 30% (1999 est.)
Labor force: 2.34 million (1996)
Labor force - by occupation: agriculture and forestry 44%, industry and construction 19%, other 37% (1996)
Budget:
revenues: $521 million
expenditures: $548 million, including capital expenditures of $83 million (1996 est.)
Industries: natural gas, oil, petroleum products, textiles, food processing
Electricity - production: 8.745 billion kWh (1998)
Electricity - production by source:
fossil fuel: 99.94%
hydro: 0.06%
nuclear: 0%
other: 0% (1998)
Electricity - consumption: 5.453 billion kWh (1998)
Electricity - exports: 2.74 billion kWh (1998)
Electricity - imports: 60 million kWh (1998)
Agriculture - products: cotton, grain; livestock
Exports: $1.1 billion (1999 est.)
Exports - commodities: oil and gas 55%, cotton 22% (1998)
Exports - partners: Iran, Turkey, Russia, Kazakhstan, Tajikistan, Azerbaijan
Imports: $1.25 billion (1999 est.)
Imports - commodities: machinery and equipment 45%, chemicals, foodstuffs (1998)
Imports - partners: Ukraine, Turkey, Russia, Germany, United States, Kazakhstan, Uzbekistan
Debt - external: $2.1 billion (1999 est.)
Economic aid - recipient: $27.2 million (1995)
Currency: 1 Turkmen manat (TMM) = 100 tenesi

SOURCE: The World Factbook

Mother Earth Travel > Country Index > Turkmenistan > Map Economy History