ECONOMY
Turkmenistan is an important supplier of raw materials, especially natural gas, petrochemicals and raw cotton. With the 2007 harvest of 920,000 tons, Turkmenistan is the second-largest cotton producer in the former Soviet Union after Uzbekistan. However, the crop yield has been steadily declining since independence because of poor irrigation and management practices.
While outside estimates place Turkmenistan's proven natural gas reserves among those of the top 15 of gas-producing countries, Turkmenistan's claims place its reserves at far higher than outside sources consider credible. In January 2005 Turkmenistan claimed its current recoverable gas resources to be as much as 20.42 trillion cubic meters (tcm), but controversy surrounding the as yet unreleased certified audit results of Turkmenistan's single largest field, Dovletabad, casts doubts on the verifiability of Turkmenistan's claims for its total reserves. To increase transparency, the president ordered that a new audit be carried out by a respected international firm, and that audit reportedly is starting with Turkmenistan's newest field in South Yoloten.
Despite its non-transparency about gas reserves, Turkmenistan remains the second-largest gas producer in the former Soviet Union after Russia. Production figures have been consistently climbing since 1998 when Turkmenistan was virtually cut off from all outside markets by Russia. Turkmenistan's 2007 output was an estimated 72 billion cubic meters (bcm); the bulk of which (50 bcm) went to Russia.
Turkmenistan relies almost exclusively on Russia for its energy export routes because most of the pipeline network is laid on Russian territory. Turkmenistan currently holds a contract with Gazprom to supply annually 50 bcm. In the first half of 2008, Turkmenistan received $130 per 1,000 cubic meters from Gazprom; that figure increased to $150 per 1,000 cubic meters on July 1. China has exploration and production rights on the right bank of the Amu Darya river in the east. Turkmenistan has contracted to provide China 30 bcm per year, beginning in 2010 when a new pipeline is due to be completed. Turkmenistan also exports to Iran about 8 bcm a year.
Turkmenistan's 2007 oil production increased by almost a million tons to 9.8 million tons. Among other major exports are liquefied natural gas (LNG) and polypropylene.
Turkmenistan has taken a cautious approach to economic reform, hoping to use gas sales to sustain inefficiencies in its economy. The private sector remains insignificant, with a substantial private share only in food processing, consumer trade and services. Despite the increased inflow of gas revenue, prospects in the near future are uncertain. Turkmenistan's statistics are closely held state secrets, and published GDP and other figures are subject to wide margins of error. Turkmenistan's unrealistic goal of "self-sufficiency" also artificially sustains the cultivation of inefficient crops, such as wheat and cotton. The 2006 UN Development Program (UNDP) Human Development Report places Turkmenistan in the category of "medium human development" although the unemployment and underemployment rates may be as high as 70%. Turkmenistan has cooperated with the international community to transport humanitarian aid to Afghanistan.
Economy(2006 est.)
GDP (PPP - purchasing power parity): $42.84 billion.
GDP per capita (PPP): $8,500.
GDP real growth rate (IMF estimate): 6%. Note: official government statistics show 21.4% growth, but these estimates are unreliable.
Inflation rate: 11%.
Agriculture: Products--cotton, grain, livestock, fruit and vegetables.
Industry: Types--natural gas, oil, petroleum products, textiles, food processing.
Trade: Exports ($5.4 billion)--gas 50%, oil and oil products 32%, cotton 2%. Partners--Russia, Iran, Italy, Turkey. Imports ($3.9 billion)--manufactured goods 65%, consumer goods 34%. Partners--Turkey, Russia, Ukraine, U.A.E., China, United States.
Debt, external: Unknown.
