IMF forecasts the growth of economic activity of Turkmenistan

Outcomes of the mission of International Monetary Fund was reported during the session of the Cabinet of Ministers on November 10 of this year. The Fund gave high remark to the development of national economy what became another evidence of the efficiency of the Government course of President Gurbanguly Berdimuhamedov.

IMF communication prepared by the experts on this account says that during the visit of the delegation of this competent financial delegation chaired by Mr Martin Sommer to Ashgabat on November 1 – 8, 2017, it has the meetings with authorised personnel of the state bodies, representatives of real and financial sectors, scientific circles and diplomatic community. Issues of macroeconomic and financial situation, economic challenges as well as forecast of our country development in the nearest future were the main subject of the meetings.

The press release says the economy of Turkmenistan continue adapting to new reality of low oil and natural gas prices. Official growth remains generally stable by increase of the import substitution volumes, broad credit policy and export of natural gas. Planned commissioning of new gas processing complexes will support further growth of economic activity.

The expert of IMF noted the adoption of the measures by official bodies that support macroeconomic correction, particularly gradual reduction of the state investments and the reform of the tariffs utility services. Further gradual but considerable reduction of the expenses on the Government investments in combination with the measures for correction of exchange rate of national currency and mitigation of the measures of monetary regulation were presented among positive practical measures.

Regarding the forecast for the nearest future, it was stated that favourable perspectives are opened for national economy. Special emphasis was laid on the necessity to pay utmost attention to simplification of administration procedures and irrational regulation, acceleration of the reforms and privatization of the state enterprises and accumulation of human capital for further development of private sector.

The importance of recently adopted seven-year plan of economic and social development (the Programme of social and economic development in 2018 – 2024), which gives an opportunity for expansion and intensification of market oriented principles of the reforms for stimulation of stable and comprehensive growth in long-term perspective, was highlighted in the final document. Simplified regime in free economic zones is able to attract new private investments including foreign one and any positive examples have to be repeated wider in other regions of Turkmenistan.

At the same time, IMF greets the preparation of the implementation of middle-term budget planning by official bodies and other structural organizations, change to budget reporting according to GFSM2001 and the revision of the system regulating financial sector, which stipulates the application of the elements of Basel principles in national regulation. The importance of wider spread of macroeconomic and financial data and improvement of its quality is also heighted in the report. It will allow improving the understanding of economic trends and will support the attraction of direct foreign investments and improvement of the access to the world financial markets.

It was highlighted in the press release the IMF expresses the willingness to support the Government reforms by consultation on economic policy subjects and improvement of personnel potential including in macroeconomic forecast and basis of tax, budgetary, monetary and credit policies.