Twenty years ago the expression “developing countries” was an uncertain categorisation describing an economic phenomenon still unfamiliar. BRICS were the first and the reason why of the change, followed since the early 2000’s by other groupings – MINT, PINE, E7, NEXT-11 – which acronym didn’t have, however, the same impact.
Now, the Big Five are an economic global pillar founding banks which can challenge the most important western financial institution. Their example has opened the way of development and, since the crisis is over, it is time for new bets.
From MENA’ region, many economies are increasing. Turkmenistan is one of these.
Middle East and North Africa reveal an extremely diverse picture. Oil-rich countries and monarchies are experiencing reasonable growth and macroeconomic stability, although other nations struggle suffering from violent conflicts, lacks in infrastructure and fuel prices flows.
According to the World Bank, the Turkmen economy touched its highest pick in 2011, with a GDP growth rate at 14.7% – performance that only China and a few others have had.
Stable at around 10% for the last three years, the country moved to an upper middle-income status – exceeding $6,000 GDP per capita by the end of 2012 – and forecasts continue to be highly promising.
GDP is doubled in 2010-2014, even if the majority of Turkmenistan’s economic statistics are state secrets.
From 1998 to 2005, Turkmenistan suffered from the continued lack of adequate export routes for natural gas. At the same time, total exports rose by an average of roughly 15% per year until 2008, largely because of higher international oil and gas prices.
In 2010, China began operations for additional pipeline increasing and expanding Turkmenistan’s export routes for its gas.
Turkmen’s exports are “Chinese” for an incredibly high 68.3%, followed by Turkey by at 5% and by Italy, as third main partner. Importing mostly machinery and equipment, chemicals and foodstuffs, its major partners are Turkey (22.3%), Russia (15.3%) and China (13%), followed by UAE, Ukraine and Germany. There is no surprise if industrial production grew by 11% last year – 8th in world comparison.
Social indicators have showed improvements commensurate with the country’s economic performance.
In 2004 unemployment was about 60%, standing at CIA researches, reducing incredibly until 2014. According to the State Statistics Committee of Turkmenistan, wages and salaries have increased by 11.2 % during 2012, compared to 2011.
Its Government’s National Socio-Economic Development Program for 2011–2030 and the National Rural Development Program focus on an inclusive economic growth while preserving economic independence, modernizing the country’s infrastructure and promoting foreign direct investment.
Additioned to this it should be recalled that Turkmenistan find itself in a very strategic geographic point – sharing common interests with China on its new Silk Route and trading with Europe and its high demand.
The Turkmen economy seems to be resilient to the global uncertainties and spillover effects coming from the Eurozone crisis and forecats show an economic status’ improvement that is going to strengthen in next years.