Turkmenistan's economy hikes due to growing investment and fiscal stability
Turkmenistan’s economy maintained robust momentum in the first seven months of 2024, supported by state-driven investments and infrastructure growth, Trend reports.
Data obtained by Trend from the European Bank for Reconstruction and Development (EBRD) indicates that Turkmenistan’s real GDP grew by 6.3 percent year-on-year between January and July 2024. The expansion was largely fueled by activity in construction, services, and government-led investment projects.
The EBRD also highlighted recent policy steps aimed at strengthening structural resilience. In particular, the adoption of a new law on energy saving and efficiency is expected to support the introduction of modern energy-saving technologies and improve the use of natural resources. In foreign trade, the launch of a single-window system for export-import operations was noted as a positive step toward simplifying cross-border commerce.
Looking ahead, the EBRD identified several reform priorities for 2025. Chief among them is diversifying gas export routes to reduce overdependence on China, which currently accounts for more than 70 percent of Turkmen gas exports. The development of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline and renewed dialogue with Türkiye were cited as potential paths to broader regional energy integration.
Furthermore, the document advocated for the convergence of the official and parallel exchange rates, which is presently constraining foreign currency accessibility and incentivizing the exodus of skilled labor. Emphasizing the optimization of hydric resources in agronomy was underscored, considering Turkmenistan’s pronounced susceptibility to hydrological stressors. The EBRD advocated for the implementation of agronomic incentives aimed at water conservation and the establishment of closed-loop recycling frameworks to optimize resource stewardship.
The nation's fiscal trajectory for 2025, as highlighted by the Bank, will hinge on the sustained implementation of reform initiatives and the capacity to mitigate structural weaknesses while capitalizing on its endogenous resource endowment.
Notably, Kazakhstan and EBRD to enhance cooperation in critical minerals and sustainable infrastructure.
