President: Turkmenistan develops monetary policy

By Azernews

By Gunay Hasanova

Turkmenistan will further keep in focus the improvement of its monetary policy, provision of the financial support to the production and the priority sectors of the national economy, and the expansion of fruitful cooperation with international financial institutions and banks.

Turkmen President Gurbanguly Berdimuhamedov announced about this in his message over the 23rd anniversary of the introduction of Turkmenistan’s currency manat into circulation.

“The stable operation of the banking sector is crucial for the competitiveness and dynamic growth of the national economy and its successful integration into the world economic system,” he said.

The president stressed that the issuance of the national currency created favorable conditions for sustainable growth of the economy, as well as maintaining a unified state monetary policy.

Berdimuhamedov noted that the banking sector, which is an important segment of the economy, recorded an intensive development over the past years.

Economically profitable projects are financed in Turkmenistan with the participation of international banks, he added.

Turkmenistan occupies a key position in the Central Asia region on natural gas supplies, the main importers of which are China and Iran. The Turkmen state budget is formed mainly at the expense of the most important sectors of the production sphere such as oil and gas, chemical, power, and construction.

Agro-industrial complex, transport and communication spheres, textile and food industry are also intensively developing in the country.

Like other countries in the Caucasus and Central Asia region, Turkmenistan has been seriously affected by external shocks, including permanently lower energy prices. The combined effect of lower prices for oil and natural gas, the recession in Russia, the cooling of the Chinese economy, and a sizeable appreciation of the U.S. dollar has caused GDP growth in Turkmenistan to decline.

Nevertheless, the country’s economic growth is projected to average about 6 percent in 2016–2017.

The growth rate of Turkmenistan’s GDP was maintained at the level of 6.1 percent in January-June 2016, according to the country’s Ministry of Economy and Development

Meanwhile, the growth rate of GDP in industrial complex amounted to 2.1 percent, in construction – 4.4 percent, transportation, and communication sector – 9.9 percent, trade – 16 percent, agriculture – 6.9 percent, services – 9.7 percent.

During the H1 2016, the growth rate of output increased by 3 percent in Turkmenistan. The growth rate of retail trade turnover increased by 16.1 percent in January-June 2016 compared to the same period of 2015.

Average monthly salary in Turkmenistan increased by 9.5 percent in H1 2016 compared to the same period of 2015.

The volume of investments from all sources of funding increased by 5.7 percent during the reporting period compared to January –June 2015.