ASHGABAT, TURKMENISTAN – The Asian Development Bank (ADB) in its flagship economic publication, Asian Development Outlook 2014 (ADO), forecasts that Turkmenistan’s gross domestic product will grow by 11% this year as hydrocarbon exports and public investment expand.
Last year the authorities registered 10.2% growth with strong performance observed in both the hydrocarbon and non-hydrocarbon sectors of the country’s economy. Double-digit growth was accompanied by a slightly higher change in the consumer price index: 6.0% in 2013 vs. 5.3% in 2012 on a year average basis.
While fiscal policy remained accommodative with annual budget expenditure up by 28.3% relative to 2012, monetary policy was gradually geared towards tightening as broad money growth decelerated to 29.5% in 2013 from 35.6% a year earlier.
According to the ADO, strengthening public financial management through enhanced fiscal frameworks and increased effectiveness and efficiency of public spending would be yet another major path to sustaining growth in Turkmenistan.
“Monetization of the country’s hydrocarbon resources has helped maintain fiscal space supporting national development objectives,” said Plamen Bozakov, ADB’s Resident Representative in Turkmenistan. “It is encouraging that the government also takes steps to put in place streamlined institutional arrangements governing public financial management as exemplified by a recently adopted budget code.”
The annual ADO provides a comprehensive analysis of economic performance and offers medium-term forecasts for the 45 economies in Asia and the Pacific that make up developing Asia. This year’s ADO features Fiscal Policy for Inclusive Growth in its special theme chapter, which accentuates a bigger role fiscal policy can play in ensuring that the benefits of growth are broadly shared.
Turkmenistan joined ADB in 2000 and to date their partnership has been mainly focused on infrastructure development conducive to regional trade and cooperation.