Typical peculiarity of the economy of Turkmenistan in modern stage is the attainment of growth dynamism of GDP owing to advance development of progressive sectors of industrial and investment segment. In 2012, total share of this sector came to 65%. Its 52 % belongs to the industry and 13% - to the construction. Within the last five years, the fixed asset investments in the country increased by three times. As compared with the 2011, only in 2012, the volume of investments raised by 38.0%. Correlation of volume of investments to GDP of the country in 2012 exceeded 48-percent boundary.
In “Report on world investments for 2012” of the United Nations Conference on Trade and Development (UNCTAD), it is noted that Turkmenistan ranks among the top ten countries concerning index of mobilization of direct foreign investments.
High investment activity allows our country commissioning annually hundreds of new facilities of industry, agro-industrial complex, transport and engineering infrastructure, social units of the sectors, dwelling. Within 2012-2016, the country plans to draw 200 billion manats of capital investments, put into operation and reconstruct 450 enterprises and facilities of industry and other sectors of economy. In fact, these numbers will prove to be quite higher as within the first year of realization of the Presidential program, over 48 billion manats of capital investments were drawn in the country and task outlined in the program was fulfilled by 121%.
In 2012, 48 children’s preschool institutions, 36 comprehensive schools, 25 sport schools, 16 sport structures and stadiums, 17 clinics and health centers, 8 hospitals, 7 cultural centers, 9 enterprises for production of drinking water, 1.6 million square meters of dwelling were constructed in Turkmenistan.
Since 2008, i.e. the year, when world financial crisis started, Turkmenistan proceeded to the realization of the National Program “Village”. This measure was one of the anticipatory steps on prevention of negative influence of the world crisis on economy of the country. Within 2008-2011, according to the National Program “Village”, it was drawn 8.7 billion manats and in 2012 – 4.9 billion manats of capital investments, i.e. considerably higher than investments in 2006 on whole economy of the country.
In 2012, foreign-trade turnover of Turkmenistan increased by 21.4%. Like in previous years, it was reached quite high level of positive foreign-trade balance. In 2012, over 110 world countries were the trade partners of Turkmenistan.
Influence of the foreign trade on the country’s investment activity is obvious. On the one hand, significant part of the import of Turkmenistan is the products of production and technical purposes, i.e. technological equipment, electrical machines, mechanicals, transport vehicles, raw material and others. In 2012, their share in import came to 84%. They, first of all, are directed to the construction of facilities. On the other hand, considerable part of positive amount of the current account of balance of payments is also major source of financing of investments in basic capital.
Dynamic growth paces of incomes of the State Budget also have positive influence upon investment activity of the country. Within 2008-2012, the incomes of the State Budget of the country increased by 2.1 times. In 2012, 69% of the funds of the State Budget of the country were directed to the rendering of social and public services. It is considerably increased the share of funds from the centralized and local budgets in total volume of investments in basic capital. In 2012, from the centralized and local budgets, it was financed 163% of investments in basic capital of the country.
Within the last years, the State Budget of Turkmenistan is stably profitable, i.e. incomes exceed the costs. In 2012, correlation of surplus of the State Budget to GDP of the country came to 6.4%. It is quite high index, reflecting the soundness of financial system of the country.
The State Budget is the guarantee of successful realization of grandiose social programs. Moreover, in 2012, significant part (34%) of investments was also directed to the construction of the facilities of non-manufacturing sphere.
Stable socio-political situation, sustainable growth of the national economy, invariable rate of the national currency, powerful resource and source of raw materials, legal system, guaranteeing the reliability of investments taking into account international requirements, contribute in many respects to the growth of investment rating of Turkmenistan.
The state also creates well-developed transport system for successful integration of Turkmenistan’s economy into world economy. In 2012, it was commissioned the section Bereket – border of 444-kilometer long railway corridor North-South, railway stations in Serdar town and Berkarar settlement, 8 facilities of transport infrastructure, 6 filling stations, 3 highway bridges over Garagum River and a series of other projects. At present, it was started the construction of railway bridge over Amyderya River between Turkmenabat and Farap as well as highway bridge, and in Turkmenabat – the construction of complex of new international airport intended for service of 500 passengers per hour.
With a view of keeping of stably high development paces of economy, stimulation and support of the private sector, at the beginning of this year, the President of Turkmenistan adopted “State program of privatization of enterprises and facilities of state ownership for 2013-2016” and approved the plan of relevant measures on privatization for this period. In solution of these issues, particular significance is attached to the formation of valid equity market. With a view of efficient transfer to the market relations, it will be continued the works on creation of the Stock Exchange and other institutions of market. These steps will contribute to further acceleration of development of the private sector of the country’s economy.
In “Report on world investments for 2012” of the United Nations Conference on Trade and Development (UNCTAD), it is noted that Turkmenistan ranks among the top ten countries concerning index of mobilization of direct foreign investments.
High investment activity allows our country commissioning annually hundreds of new facilities of industry, agro-industrial complex, transport and engineering infrastructure, social units of the sectors, dwelling. Within 2012-2016, the country plans to draw 200 billion manats of capital investments, put into operation and reconstruct 450 enterprises and facilities of industry and other sectors of economy. In fact, these numbers will prove to be quite higher as within the first year of realization of the Presidential program, over 48 billion manats of capital investments were drawn in the country and task outlined in the program was fulfilled by 121%.
In 2012, 48 children’s preschool institutions, 36 comprehensive schools, 25 sport schools, 16 sport structures and stadiums, 17 clinics and health centers, 8 hospitals, 7 cultural centers, 9 enterprises for production of drinking water, 1.6 million square meters of dwelling were constructed in Turkmenistan.
Since 2008, i.e. the year, when world financial crisis started, Turkmenistan proceeded to the realization of the National Program “Village”. This measure was one of the anticipatory steps on prevention of negative influence of the world crisis on economy of the country. Within 2008-2011, according to the National Program “Village”, it was drawn 8.7 billion manats and in 2012 – 4.9 billion manats of capital investments, i.e. considerably higher than investments in 2006 on whole economy of the country.
In 2012, foreign-trade turnover of Turkmenistan increased by 21.4%. Like in previous years, it was reached quite high level of positive foreign-trade balance. In 2012, over 110 world countries were the trade partners of Turkmenistan.
Influence of the foreign trade on the country’s investment activity is obvious. On the one hand, significant part of the import of Turkmenistan is the products of production and technical purposes, i.e. technological equipment, electrical machines, mechanicals, transport vehicles, raw material and others. In 2012, their share in import came to 84%. They, first of all, are directed to the construction of facilities. On the other hand, considerable part of positive amount of the current account of balance of payments is also major source of financing of investments in basic capital.
Dynamic growth paces of incomes of the State Budget also have positive influence upon investment activity of the country. Within 2008-2012, the incomes of the State Budget of the country increased by 2.1 times. In 2012, 69% of the funds of the State Budget of the country were directed to the rendering of social and public services. It is considerably increased the share of funds from the centralized and local budgets in total volume of investments in basic capital. In 2012, from the centralized and local budgets, it was financed 163% of investments in basic capital of the country.
Within the last years, the State Budget of Turkmenistan is stably profitable, i.e. incomes exceed the costs. In 2012, correlation of surplus of the State Budget to GDP of the country came to 6.4%. It is quite high index, reflecting the soundness of financial system of the country.
The State Budget is the guarantee of successful realization of grandiose social programs. Moreover, in 2012, significant part (34%) of investments was also directed to the construction of the facilities of non-manufacturing sphere.
Stable socio-political situation, sustainable growth of the national economy, invariable rate of the national currency, powerful resource and source of raw materials, legal system, guaranteeing the reliability of investments taking into account international requirements, contribute in many respects to the growth of investment rating of Turkmenistan.
The state also creates well-developed transport system for successful integration of Turkmenistan’s economy into world economy. In 2012, it was commissioned the section Bereket – border of 444-kilometer long railway corridor North-South, railway stations in Serdar town and Berkarar settlement, 8 facilities of transport infrastructure, 6 filling stations, 3 highway bridges over Garagum River and a series of other projects. At present, it was started the construction of railway bridge over Amyderya River between Turkmenabat and Farap as well as highway bridge, and in Turkmenabat – the construction of complex of new international airport intended for service of 500 passengers per hour.
With a view of keeping of stably high development paces of economy, stimulation and support of the private sector, at the beginning of this year, the President of Turkmenistan adopted “State program of privatization of enterprises and facilities of state ownership for 2013-2016” and approved the plan of relevant measures on privatization for this period. In solution of these issues, particular significance is attached to the formation of valid equity market. With a view of efficient transfer to the market relations, it will be continued the works on creation of the Stock Exchange and other institutions of market. These steps will contribute to further acceleration of development of the private sector of the country’s economy.