Press Release No. 14/500

Press Release: Statement at the End of an IMF Staff Visit to Turkmenistan

November 5, 2014

A staff team of the International Monetary Fund (IMF) led by Bjorn Rother visited Ashgabat during October 29−November 4, 2014. The team assessed macroeconomic developments and discussed economic challenges and policy priorities with senior government officials as well as representatives of the private sector and the diplomatic community. The visit also focused on identifying key themes for the upcoming Article IV Consultation mission, which is scheduled to take place in January 2015.

At the conclusion of the visit, Mr. Rother issued the following statement:

“Growth in Turkmenistan remains strong and is projected to reach 10−11 percent in 2014 on the back of increasing gas exports to China and large public investment. Inflation is likely to remain in the low single digits. With large buffers, government efforts to diversify gas export routes, and limited links with international financial markets, the impact of spillovers from economic slowdowns in the region is limited. Notwithstanding the favorable economic prospects, the Turkmen economy is vulnerable to developments in hydrocarbon markets.

“The IMF team also participated in the conference Monetary Policy, Competitiveness and Economic Growth in Epoch of Might and Happiness of Turkmenistan. The mission presented the IMF’s perspective on the global and regional economic outlook as well as recent IMF staff work on improving public investment efficiency in hydrocarbon-exporting countries.

“IMF staff also expressed the institution’s willingness to continue supporting the government’s reform efforts with policy advice and capacity building, including on national accounts statistics, monetary policy operations, and fiscal policy.

“The mission is grateful to the authorities for their hospitality and for the constructive discussions that focused on helping Turkmenistan project its strong economic performance into the future, ensuring that all parts of societies can experience rising living standards, and maintaining macroeconomic stability in a challenging external environment.”