Turkmenistan Economy 1997

Economy - overview Turkmenistan is largely desert country with nomadic cattle raising,intensive agriculture in irrigated oases, and huge gas and oil resources.One-half of its irrigated land is planted in cotton, making it the world'stenth largest producer. It also possesses the world's fifth largest reservesof natural gas and substantial oil resources. Until the end of 1993, Turkmenistanhad experienced less economic disruption than other former Soviet states becauseits economy received a boost from higher prices for oil and gas and a sharpincrease in hard currency earnings. In 1994, Russia's refusal to export Turkmengas to hard currency markets and mounting debts of its major customers inthe former USSR for gas deliveries contributed to a sharp fall in industrialproduction and caused the budget to shift from a surplus to a slight deficit.The economy recovered slightly in 1996, but high inflation continued. Furthermore,with an authoritarian ex-communist regime in power and a tribally based socialstructure, Turkmenistan has taken a cautious approach to economic reform,hoping to use gas and cotton sales to sustain its inefficient economy. In1996, the government set in place a stabilization program aimed at a unifiedand market-based exchange rate, allocation of government credits by auction,and strict limits on budget deficits. Privatization goals remain limited.Turkmenistan is working hard to open new gas export channels through Iranand Turkey to Europe, but these will take many years to realize.

GDP purchasing power parity - $11.8 billion (1996 estimate as extrapolatedfrom World Bank estimate for 1994)

GDP - real growth rate 0.1% (1996 est.)

GDP - per capita purchasing power parity - $2,840 (1996 est.)

GDP - composition by sector
agriculture : 16%
industry: 48%
services: 36% (1996 est.)

Inflation rate - consumer price index 600% (1996 est.)

Labor force
total : 1.68 million (1995)
by occupation: agriculture and forestry 43%, industry and construction 20%, other 37%(1992)

Unemployment rate NA%

Budget
revenues: $NA
expenditures: $NA, including capital expenditures of $NA

Industries natural gas, oil, petroleum products, textiles, food processing

Industrial production growth rate 17.9% (1996 est.)

Electricity - capacity 3.95 million kW (1994)

Electricity - production 9.87 billion kWh (1994)

Electricity - consumption per capita 1,855 kWh (1995 est.)

Agriculture - products cotton, grain; livestock

Exports
total value: $1.8 billion to states outside the FSU (1996 est.)
commodities: natural gas, cotton, petroleum products, electricity, textiles, carpets
partners: FSU, Eastern Europe, Turkey, Argentina

Imports
total value : $1.3 billion from states outside the FSU (1996 est.)
commodities: machinery and parts, grain and food, plastics and rubber, consumer durables,textiles
partners: FSU, Germany, Poland, Czech Republic, Turkey

Debt - external $400 million (of which $275 million to Russia) (1995 est.)

Economic aid
recipient: ODA, $10 million (1993)
note: commitments, $1,830 million ($375 million drawn), 1992-95

Currency 1 Tukmen manat (TMM) = 100 tenesi; Turkmenistan introduced its nationalcurrency on 1 November 1993

Exchange rates manats per US$1 - 4,070 (January 1997), 2,400 (January 1996)
note: government established a unified rate in mid-January 1996

Fiscal year calendar year

NOTE: The information regarding Turkmenistan on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Turkmenistan Economy 1997 information contained here. All suggestions for corrections of any errors about Turkmenistan Economy 1997 should be addressed to the CIA.