Short facts about the economy in Turkmenistan

Economy - overview:

Turkmenistan is largely desert country with intensive agriculture in irrigated oases and huge gas (fifth largest reserves in the world) and oil resources. One-half of its irrigated land is planted in cotton, making it the world's tenth largest producer. Until the end of 1993, Turkmenistan had experienced less economic disruption than other former Soviet states because its economy received a boost from higher prices for oil and gas and a sharp increase in hard currency earnings. In 1994, Russia's refusal to export Turkmen gas to hard currency markets and mounting debts of its major customers in the former USSR for gas deliveries contributed to a sharp fall in industrial production and caused the budget to shift from a surplus to a slight deficit. With an authoritarian ex-communist regime in power and a tribally based social structure, Turkmenistan has taken a cautious approach to economic reform, hoping to use gas and cotton sales to sustain its inefficient economy. Privatization goals remain limited. In 1998-2000, Turkmenistan suffered from the continued lack of adequate export routes for natural gas and from obligations on extensive short-term external debt. At the same time, however, total exports rose sharply because of higher international oil and gas prices. Prospects in the near future are discouraging because of widespread internal poverty and the burden of foreign debt. IMF assistance would seem to be necessary, yet the government is not as yet ready to accept IMF requirements. Turkmenistan's 1999 deal to ship 20 billion cubic meters (bcm) of natural gas through Russia's Gazprom pipeline helped alleviate the 2000 fiscal shortfall. Inadequate fiscal restraint and the tenuous nature of Turkmenistan's 2001 gas deals, combined with a lack of economic reform, will limit progress in the near term.

GDP:	purchasing power parity - $19.6 billion (2000 est.)

GDP - real growth rate:

16% (2000 est.)

GDP - per capita:

purchasing power parity - $4,300 (2000 est.)

GDP - composition by sector:

agriculture:  25% industry:  43% services:  32% (1999 est.)

Population below poverty line:

58% (1999 est.)

Household income or consumption by percentage share:

lowest 10%:  2.6% highest 10%:  31.7% (1998)

Inflation rate (consumer prices):

14% (2000 est.)

Labor force:

2.34 million (1996)

Labor force - by occupation:

agriculture 44%, industry 19%, services 37% (1996)

Unemployment rate:

NA%

Budget:

revenues:  $588.6 million expenditures:  $658.2 million, including capital expenditures of $NA (1999 est.)

Industries:

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

Industrial production growth rate:

18% (2000 est.)

Electricity - production:

8.371 billion kWh (1999)

Electricity - production by source:

fossil fuel:  99.94% hydro:  0.06% nuclear:  0% other:  0% (1999)

Electricity - consumption:

4.785 billion kWh (1999)

Electricity - exports:

4.1 billion kWh (1999)

Electricity - imports:

1.1 billion kWh (1999)

Agriculture - products:

cotton, grain; livestock

Exports:

$2.4 billion (f.o.b., 2000 est.)

Exports - commodities:

gas 33%, oil 30%, cotton fiber 18%, textiles 8% (1999)

Exports - partners:

Ukraine, Iran, Turkey, Russia, Kazakhstan, Tajikistan, Azerbaijan

Imports:

$1.65 billion (c.i.f., 2000 est.)

Imports - commodities:

machinery and equipment 60%, foodstuffs 15% (1999)

Imports - partners:

Ukraine, Turkey, Russia, Germany, US, Kazakhstan, Uzbekistan

Debt - external:

$2.5 billion (2000 est.)

Economic aid - recipient:

$27.2 million (1995)

Currency:

Turkmen manat (TMM)

Currency code:

TMM

Exchange rates:

Turkmen manats per US dollar - 5,200 (January 2001), 5,200 (January 2000), 5,350 (January 1999), 4,070 (January 1997), 2,400 (January 1996)

Fiscal year:

calendar year

Source: World Factbook