Turkmenistan overview

Share this page:

In Turkmenistan we focus on:

Supporting private sector development. Turkmenistan’s economy continues to be characterised by pervasive state intervention and state ownership. Although the number of private entrepreneurs and companies is growing, the private sector remains small and closely regulated by the state. In response to these broad reform challenges, during the next Strategy period the Bank will continue to focus its activities in Turkmenistan on supporting private sector development, both directly and indirectly via local partner banks. The EBRD will provide financing to privately-owned companies outside the oil and gas sectors, focusing on food processing and distribution, logistics, transport services, packaging, furniture, and hospitality. To support the development of effective and sustainable financial intermediation to the private sector, the EBRD will prioritise strengthening the financial sector to enable it to fund the economy by introducing market-oriented principles, and will launch a new banking framework agreement with existing and potentially new partner banks to channel funds to private sector MSME clients.

Promoting international integration. To support enhanced integration of Turkmenistan’s economy into the global economy, the EBRD will seek opportunities to attract much-needed FDI by investing alongside foreign strategic investors, and will promote cross-border trade through the Trade Facilitation Programme with eligible partner banks. The EBRD may consider supporting regional transport operations, particularly for projects with a sound business rationale and which are integrated into the CAREC transport corridors or the EU-TRACECA programme.

Laying the foundations for future reforms. In some sectors, particularly energy efficiency, power and municipal services, reforms have been insufficient to enable the EBRD to engage fully. The EBRD will therefore limit its activities in these areas to selective and targeted policy dialogue, as requested by the authorities, to promote the adoption of reforms leading to market-based solutions to the challenges in these sectors.

The EBRD’s latest Turkmenistan strategy was adopted on 10 July 2019

Turkmenistan's policy response to the coronavirus crisis

The EBRD is monitoring Turkmenistan's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.

Learn more

Current EBRD forecast for Turkmenistan Real GDP Growth in 2020 1.0%

Current EBRD forecast for Turkmenistan Real GDP Growth in 2021 6.0%

In Turkmenistan, GDP growth reached 6.3 per cent in 2019 and the first quarter of 2020 (year-on-year). According to the IMF, fiscal and external accounts improved in 2018-2019 in line with fiscal consolidation and import substitution measures undertaken by the authorities. Turkmenistan still depends on China for most of its gas exports (more than 90 per cent in 2018). The spread of the coronavirus has caused Chinese gas imports to decline by 17 per cent year-on-year in the first two months of 2020, and in March they were suspended altogether. Turkmenistan’s economy as a whole will be hit by a reduction in the value of its gas exports. Reduced foreign exchange inflows have already translated into tighter foreign exchange regulations, interfering with private-sector activities. The government introduced restrictions on the internal and external movement of citizens but refrained from imposing a strict lockdown that would have disrupted business activities. Overall, the economy is expected to grow by 1.0 per cent in 2020, and 6.0 per cent in 2021 supported by a recovery in China’s demand for gas.
Share this page: