Key developments and challenges

Turkmenistan’s economy was among the fastest growing economies in the world in 2011. GDP grew by 14.7 per cent in 2011, driven by increasing hydrocarbon production and surging public infrastructure spending. Increased gas exports to China as well as growing exports of oil have supported the strong external balance.

Prices for food and other products and services remain regulated by the state. The threefold increase in prices for bread in July 2012 and looser controls over meat prices were a step in the direction of price liberalisation, but constituted an unexpected negative shock for consumers.

Some progress has been made in the area of structural reform. State regulation in the agriculture sector has decreased and IFRS accounting standards have been introduced for banks. A number of programmes have been developed in other areas but progress with implementation has been slow.