IMF Staff Concludes 2017 Article IV Mission to Turkmenistan
IMF News, March 21, 2017
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Bibliographic details
- Published: March 21, 2017
Mission summary and timeline
- Press Release No. 17/91
- March 21, 2017
- An IMF team led by Mr. Martin Sommer visited Ashgabat during March 6-17, 2017 to hold discussions for the 2017 Article IV consultation.
- A Board discussion is planned for May 2017.
- PRESS OFFICER: Randa Mohamed Elnagar
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
Macroeconomic assessment and key findings
- The Turkmen economy continues to adjust to a challenging external environment, including persistently low natural gas prices and slower growth in trading partners.
- Growth has been broadly stable recently, supported by natural gas exports and industrial policies.
- The external current account deficit remains.
Near-term policy challenge and adjustment options
- The near-term key policy challenge is to re-calibrate the policy mix to reduce the sizable external imbalances.
- Policy options highlighted:
- Gradual but significant cuts in public investment expenditures that remain among the highest in the world.
- Combine investment cuts with other policy measures which would help adjust domestic demand to a more sustainable level.
- Design considerations:
- The pace and composition of policy adjustment should be designed to reduce the adverse impact on economic growth and vulnerable segments of the population.
Structural reforms and medium-term priorities
- Maintaining strong, sustainable, and inclusive growth will require:
- Improvements in the business and regulatory environment to support further private sector development.
- Effective implementation of reforms of state-owned enterprises and privatization.
- Greater efficiency of public spending.
- Continued focus on social protection and human development outcomes.
- The authorities plan to embed these priorities in the upcoming 7-year development plan for 2017-23.
Data, investment climate, and IMF support
- Broader dissemination and improving the quality of macroeconomic and financial data would help:
- Enhance understanding of economic trends.
- Attract foreign direct investment.
- Ease access to the global financial markets.
- The IMF stands ready to support the government’s reforms through policy advice and capacity building, including on:
- Macroeconomic statistics and forecasting.
- Monetary policy operations.
- Fiscal policy.
IMF Communications Department — End-of-Mission statement issued by Mr. Martin Sommer (March 21, 2017).