The strategy of economic development of Turkmenistan, successfully implemented under the leadership of President Serdar Berdimuhamedov, is based on a scientific approach, competent management, forecasting and planning. It is aimed at modernization, diversification and digitalization of the economy, effective combination of market elements and state regulation, widespread introduction of the latest technologies and innovations, active integration of the country into the system of world economic relations, consistent improvement of the quality of life of the population.
To achieve these goals, a number of priority tasks have been identified, outlined in the long-term concept document “The Revival of the new epoch of the powerful state: The National Program of Socio-Economic Development of Turkmenistan in 2022-2052”, in the medium-term “Program of the President of Turkmenistan on Socio-Economic Development of the country in 2022-2028” and “The National Program of the President of Turkmenistan on the transformation of social and living conditions of the population of villages, towns, cities, etraps and etrap centers for the period up to 2028”, and also in the Program for the Socio-Economic Development of the country and the Investment Program of Turkmenistan for the current year.
The results of the past six months indicate the strengthening of macro-economic stability and economic power of the country, the increase in the level of industrialization of the national economy and the acceleration of its transition to market relations, ensuring dynamic growth of key industries and services, the active introduction of digital technologies in all sectors, strengthening the relationship between production and science. At an expanded meeting of the Cabinet of Ministers of Turkmenistan held on July 14, it was reported that as a result of the practical steps taken, a steady growth rate of the country's GDP has been ensured for six months, which increased by 6.2 percent. The main drivers of economic progress are the growth of investments, exports, domestic consumption and the development of entrepreneurship.
Compared to the same period of 2022, in the first half of the year, the volume of capital investments allocated for the development of the national economy from all sources of financing increased by 24.6 percent, which is 16 percent in relation to GDP. Of these, 49.4 percent are directed to the construction of industrial complexes, and 50.6 percent are social facilities. The volume of lending by banks, especially to the non-state sector and agricultural producers, and the issuance of mortgage loans have also increased. As of July 1, 2023, the revenue part of the State Budget was executed at the level of 113.1 percent, and the expenditure part – 97.6 percent.
As President Serdar Berdimuhamedov emphasized at the Government meeting, it is necessary to ensure a stable turnover of financial resources in the economy, to study on a regular basis the sources of financing of national investment projects, to intensify the activity of banks in lending to the production sectors of the economy.
Along with ensuring economic and financial stability, among the priorities at the present stage are: increasing the level of employment of the population, increasing the export potential of the state, introducing digital technologies in the industry, increasing investments in the development of the educational system and the implementation of youth policy. New impulses for the development of the economy will be given by the instructions given by the head of state on the preparation of regulations arising from the Laws of Turkmenistan “On Free Economic Zones” and “On Public-Private Partnership”, as well as the Memorandum on the foreign trade regime of Turkmenistan in connection with the accession of our country to the World Trade Organization. The full introduction of the Electronic Tax System will serve to improve the budget and tax sphere using digital technologies.
Today, large-scale construction of industrial and social facilities continues in the country, state programs are being effectively implemented to produce import-substituting products, increase the volume of export-oriented goods, and create an electronic industry. The highlight of the past half-year was the opening of the smart city of Arkadag, which was granted 21 international certificates and awards. Congratulating the Turkmen people on this event, President Serdar Berdimuhamedov emphasized that the creation of such a city by domestic builders in just four years demonstrates the high power of our economy.
The investment forums held since the beginning of the year in Turkmenistan and abroad have provided an idea of significant achievements in various spheres of the national economy, based on a modernized, high-tech industry, and modern infrastructure of processing industries capable of manufacturing a wide range of products competitive on the world market.
In April, an international visiting forum on attracting foreign direct investment in the strategic oil and gas industry of Turkmenistan was held in Dubai, United Arab Emirates. The participation of well-known foreign business structures, financial institutions, reputable international organizations, leading experts of specialized companies became evidence of the increased attention of the world business community to the huge resource potential and the growing oil and gas market of our country.
The agenda of the international conference held within the framework of the investment forum included such topical topics as the effective use of the richest natural resources, the development of energy markets, attracting financial resources to projects for the development of offshore blocks of the Turkmen sector of the Caspian Sea, new mechanisms of interaction in the field of increasing productivity at the Galkynyş field, and the introduction of environmentally friendly industries, innovative technologies, etc.
To attract capital to various sectors of the national economy, socio-economic and industrial development of Arkadag city, the International Investment Forum “Arkadag – Smart City” was organized in June, bringing together delegates from around the world, as well as representatives of leading international and regional organizations, reputable financial structures, and major foreign companies. The participants of the large-scale business event were familiarized with the general economic picture of Turkmenistan's development in the modern epoch and its investment strategy, the policy of President Serdar Berdimuhamedov aimed at radically reforming the national economic complex of the country and expanding multifaceted cooperation with strategic partners, including on topical issues of promoting effective digital and green solutions at all levels.
The speakers reiterated macroeconomic indicators of recent years that characterize the stable development of the national economy. In particular, it was noted that by the end of 2022, GDP growth amounted to 6.2 percent, investment – 14.2 percent, exports of products increased by 43.6 percent compared to 2021. The annual volume of investments in the economy is more than 30 percent, and the share of foreign investors reaches 13 percent. A number of documents were signed within the framework of the International Investment Forum. Among them are contracts for export-import operations, cooperation in the service sector, etc.
In a joint statement adopted following the Summit of the heads of Turkmenistan, Tajikistan and Uzbekistan, held on August 4 in Ashgabat, it is noted that, based on the positive experience of trilateral cooperation in energy, the parties agreed to hold negotiations at the level of heads of energy departments in the second half of 2023 to consider the possibilities of joint activities in the oil and gas and electric power sectors.
In general, the increase in exports is stimulated by the widespread introduction of innovative and digital technologies in all industries, which increases the productivity and competitiveness of domestic goods. The promotion of high-quality industrial and agricultural products to foreign markets is facilitated by the activities of trading houses of Turkmenistan, opened in recent years in Uzbekistan, Türkiye, Russia, Belarus and a number of other states.
The country's export potential is also being strengthened by the rapidly developing non-governmental sector, being clearly demonstrated by the jubilee forum of the Union of Industrialists and Entrepreneurs held in March. Currently uniting more than 28 thousand representatives of domestic private business, the UIE carries out large-scale work on the development of entrepreneurship, support of initiatives in this area and the formation of modern business infrastructure, makes a significant contribution to the formation of an innovative economy and export growth.
The outperforming rates of private business development is confirmed by the figures given at the July meeting of the Government on the UIET, according to which the growth in agricultural and food production for 6 months of this year reached 110.3 percent, industrial – 109.6 percent.
With the full support of the state, members of the business community are building residential areas, cottage complexes, park areas, administrative and business districts, large-scale infrastructure and industrial facilities in the capital and velayats. Among the largest state orders are the construction of the Ashgabat–Turkmenabat expressway, the facilities of Arkadag city, the 17th stage of the development of the Turkmen capital. Domestic entrepreneurs are increasingly engaged in the manufacture of competitive products that replace imported goods and output for export.
By mastering all new spheres of activity, the Turkmen business sector promotes the digital transformation of the economy and the service sector. Thus, private IT companies offer services for business promotion, conducting relevant video conferences, digital management and cybersecurity, implementing the concepts of smart home and smart city. A number of companies are working in the field of e-commerce and the introduction of digital services for the purpose of a new organization of trade and services. Among them are entrepreneurs engaged in catering, wholesale and retail trade, who have created websites on various platforms, accept online orders and establish delivery services for goods.
This facilitates the development of the consumer sector and the growth of domestic consumption, supported by an increase in real incomes of the population. In the first half of 2023, retail trade turnover increased by 9.3 percent compared to the same period last year, and foreign trade turnover increased by 8 percent. Wages for large and medium-sized enterprises of the country increased by 9.9 percent in comparison with the corresponding period of 2022. According to the Decree signed by the President of Turkmenistan, starting from January 1, 2024, the salaries of employees of institutions and enterprises, pensions and state benefits of citizens, scholarships of students and trainees will be increased by 10 percent once again.
At an expanded meeting of the Cabinet of Ministers following the results of the half-year, President Serdar Berdimuhamedov highlighted that in order to improve the supply of the domestic market with food and other essential goods, the production potential of the shopping complex should be fully utilized.
The achieved successes and prospects in increasing the volume of production of domestic goods and expanding the service sector were demonstrated by the Exhibition of Achievements of the shopping complex of Turkmenistan held in April. Within its framework, the launch ceremony of the Trade Information Portal of Turkmenistan was held, intended to facilitate the entry of our country into the World Trade Organization, in particular, the implementation of the protocol on trade facilitation.
Created by the Ministry of Trade and Foreign Economic Relations of Turkmenistan with the financial support of the EU, as well as with the technical assistance of the International Trade Center and the United Nations Conference on Trade and Development (UNCTAD), the online platform contains data on exports, imports and transit of strategic groups of goods for the country's economy. They reflect the stable growth of domestic trade, in which a competitive environment has been formed, entrepreneurial activity has been clearly manifested, and modern methods of business organization and service provision have been successfully applied.
Thus, the indicators of socio-economic development that Turkmenistan demonstrates in the era of the Revival of the new epoch of the powerful state under the leadership of President Serdar Berdimuhamedov confirm the effectiveness of the national programs being implemented, the main goal of which is the further progress of the Homeland, improving the welfare of the people.
