TURKMENISTAN

By Todor Valev and Anton Borisov

MAP

Basic Facts

• Central Asia

• Population: 4.9 million

• Area: 488, 100 km2

• Natural Gas and Oil

Historical Background

• Independence from SSSR in 1991

• Remains a totalitarian country under the rule of the former Communist party

• Personality cult – “President for Life” Saparmurat Niyazov

• 2006 - New President and hope for change

Economic Background• Desert Country

• Natural Gas and Petroleum

• Trade Account (4.596 billion dollars)

• GDP (26.201 billion dollars)– Agriculture – 28.5%– Industry – 42.7%– Services – 28.8%

Current Account

Data Obtained from International Monetary Fund (IMF)

CA Balance (in billion $U.S.)

-2

0

2

4

6

8

10

12

14

16

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Goods and Assets Markets

• Hyperinflation and negative GDP growth during the first years of independence

• Constant arguments with Russia concerning the gas prices and transit

• Stabilizing of the economy around 1999• Growing planned economy offsetting the

inefficiencies through high gas export revenue

• State-controlled banking system

GDP Growth

Real GDP growth (annual percentage rate)

-20

-15

-10

-5

0

5

10

15

20

25

Data Obtained from InternationalMonetary Fund (IMF)

GDP Growth

Data Obtained from International

Monetary Fund (IMF)

GDP in billions $U.S.

0

5

10

15

20

25

30

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Inflation

Data Obtained from International

Monetary Fund (IMF)

Inflation Rate (in annual % change)

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

Labor Market

• Skewed and unreliable data from national sources

• Labor Force

• Unemployment – 60% (2004 estimates from CIA Fact book)

Repercussions of the World Financial Crisis

Less affected by the crisis due to:

• State regulated economy

• Strict monetary policy

• State ownership of the banking system

• Almost no participation in foreign financial markets

• However, decreasing gas and oil prices

Q&A Session!

Thank You!