In the era of global economic transformations and geopolitical shifts, Turkmenistan demonstrates remarkable resilience and consistency in the implementation of its economic strategy. The year 2024 has become a period of significant achievements and structural transformations for the country, laying the foundation for long-term and sustainable development.
Impressive stability of macroeconomic indicators against the backdrop of turbulent world markets, active diversification of the economy and large-scale digital transformation - all this forms a new image of the Turkmen economy. The country is confidently moving on the path of modernization, combining rich natural resources with innovative technologies, traditional industries with new areas of development.
Special attention should be paid to the course of strengthening the private sector and development of entrepreneurship, which in 2024 received an additional impetus due to comprehensive government support programs. In parallel, Turkmenistan has significantly expanded the geography of international economic cooperation, strengthening its position as a reliable and promising partner in the global arena.
In our detailed analysis, we will review the key achievements, trends and challenges facing Turkmenistan's economy in 2024, and assess the country's potential for further development in the context of global economic processes.
Macroeconomic stability is the foundation for sustainable growth
In the context of global economic instability, Turkmenistan demonstrated impressive stability of macroeconomic indicators throughout 2024. The key indicator of this stability was the unchanged GDP growth rate of 6.3%, which was maintained throughout all reporting periods of the year - from the first quarter to ten months.
The dynamics of development of various sectors of the economy became especially indicative. The most impressive results were demonstrated by the construction sector, which grew by 9.3% in the first half of the year, with a subsequent increase to 10.9% by the tenth month of the year. The trade sector also contributed significantly to the economic growth, showing an increase of 9% and the service sector with a growth rate of 8.6%. The transportation and communication sector showed stable development with 6.7%, while agriculture grew by 5.3%.
The execution of the state budget deserves special attention. According to the results of ten months, the revenue part was executed at the level of 102.8%, and the expenditure part - at the level of 97.7%. At the same time, the volume of investments in fixed assets showed a significant growth - by 25.2% compared to the same period of the previous year.
It is noteworthy that foreign trade turnover also shows positive dynamics, with a planned increase to 20.7 billion USD. Retail turnover showed an increase of 12.5% year-on-year, indicating the strengthening of the domestic consumer market.
An important socio-economic aspect was the growth of wages in large and medium-sized enterprises by 10.5% compared to 2023, which corresponds to the stated objectives of the state program to increase the population's income. At the same time, all social obligations, including payment of pensions, benefits and scholarships, are fulfilled in full and in a timely manner.
Such stable growth indicators in all key sectors of the economy testify to the effectiveness of the implemented economic policy and create a solid basis for further development of the country in accordance with long-term development programs.
Private sector as a catalyst for economic development
Expanding the role of private entrepreneurship has become one of the key drivers of Turkmenistan's economic growth in 2024. Thanks to the consistent government policy of business support, the share of the private sector in the country's GDP has reached an impressive figure of over 70% (excluding the fuel and energy complex).
The Union of Industrialists and Entrepreneurs of Turkmenistan, established in 2008, plays a leading role in the development of entrepreneurship. Today, this organization unites about 29 thousand private entrepreneurs, small and medium-sized enterprises actively working in various sectors of the economy - from industrial production to trade and logistics.
State support for business is realized through a comprehensive system of benefits and preferences. The tax policy is particularly indicative: individual entrepreneurs are exempt from VAT, and the turnover tax for small and medium-sized businesses is only 2%. Large businesses also enjoy favorable conditions with a profit tax of less than 8%. Agricultural producers are completely exempt from the tax burden.
The state land policy serves as a significant incentive for the development of entrepreneurship. Businesses are granted long-term favorable conditions for the use of land plots: for agricultural purposes - for 99 years, and for industrial construction - for 39 years.
Such support has resulted in the active expansion of the geography of exports of Turkmen entrepreneurs, which today covers about 50 countries of the world. The private sector is also successfully exploring new areas of cooperation with the state, actively participating in the privatization of state property and modernization of production facilities.
Strengthening international economic ties
The year 2024 was marked by a significant expansion of Turkmenistan's international economic cooperation. The central event was the TIF 2024 Investment Forum held in Ashgabat in September. The forum not only demonstrated the country's investment opportunities to the international community, but also became a platform for signing a number of strategically important agreements.
China has strengthened its position as one of the key economic partners of Turkmenistan. Already by the end of August 2024, the volume of Chinese investments in the country's projects reached 4.18 billion US dollars. Cooperation in the oil and gas, transportation and chemical industries has shown special dynamics.
The Japan-Turkmen partnership received a new impetus at the 15th meeting of the Joint Economic Committee. Important agreements were signed in the energy sector, including agreements on the maintenance of a gasoline from gas plant in Akhal velayat and the construction of a new urea plant in Balkan velayat with an annual capacity of 1,155,000 tons.
U.S.-Turkmen economic relations have developed through the active participation of companies such as John Deere, Case, General Electric and Boeing in strategic sectors of the economy. The Turkmen-American business forum held in December opened new prospects for cooperation in the spheres of industry, agriculture and high technology.
Cooperation with Turkey, especially in the gas sector, has been particularly developed. A significant step was the signing of the Declaration of Intentions on cooperation in the field of hydrocarbon resources and the Memorandum of Mutual Cooperation between the State Concern "Türkmengaz" and the Ministry of Energy and Natural Resources of Turkey.
International partners emphasize Turkmenistan's favorable investment climate and the effectiveness of the state investment policy, which creates a solid basis for further expansion of international economic cooperation.
Transportation and logistics hub: connecting continents
In 2024, Turkmenistan significantly strengthened its position as a key transport and logistics center of the region. A special achievement was the holding of a large-scale international conference "International Transport and Transit Corridors: Interconnection and Development - 2024" in November, which brought together about 600 representatives from more than 40 countries.
Significant progress has been made in the development of railroad infrastructure. In 2024, the construction of a railway station in the city of Arkadag, a warehouse complex at Turgundi station and the Turgundi-Sanabar section of the Turgundi-Herat railroad began. An important milestone was the commissioning of a new railway bridge on the Serhetabat-Turgundi main line with a length of 177 meters.
The highway infrastructure has also undergone significant development. Construction of the Ashgabat-Turkmenabat high-speed highway continues, and the Tedzhen-Mary section was commissioned in April. It is noteworthy that the management of this expressway is entrusted to a private company, which demonstrates a successful public-private partnership in the transportation sector.
Air communication is being developed through modernization and expansion of the network of international airports. The capital's international airport with a capacity of 1,600 passengers per hour, as well as international air havens in the cities of Turkmenbashi, Turkmenabat and Kerki deserve special attention.
Maritime transportation is carried out through the International Sea Port of Turkmenbashi, which has become an important link in the development of the national maritime fleet and increasing the volume of transit cargo transportation. A significant step was the development of own shipbuilding on the basis of the Balkan shipbuilding and repair plant.
Within the framework of international cooperation, Turkmenistan's participation in the Ashgabat agreement on the creation of international transport and transit corridors between Iran, Oman, Qatar, Turkmenistan and Uzbekistan has acquired special significance. This agreement promotes the development of transportation routes in the North-South and East-West directions.
Energy sector
Turkmenistan's fuel and energy complex demonstrated impressive results in 2024, strengthening its position as one of the key drivers of the country's economic growth. The state concern "Türkmennebit" ensured overfulfillment of the plan on oil and gas condensate production, reaching 102.6%. Oil refining at the concern's refineries also exceeded the planned indicators, amounting to 104.1%.
Seyda oil refinery has achieved special successes, having processed 431,400 tons of raw materials since the beginning of the year, having fulfilled the production plan by 109.1%. Of the total output of 375.7 thousand tons, a significant share - 219 thousand tons - falls on the production of gasoline of various grades. For 11 months the refinery also produced 109.6 thousand tons of diesel fuel, 23.6 thousand tons of heavy vacuum gasoil and more than 19 thousand tons of road bitumen.
In the field of international energy cooperation, a significant development was the strengthening of partnership with Turkey in the gas sector, supported by the signing of a new Declaration of Intent on cooperation in the field of hydrocarbon resources. Significant progress was also made in cooperation with Japanese companies, particularly in the area of maintenance of the gasoline from gas plant in the Ahal province.
Special attention was paid to the development of renewable energy sources in 2024. Under the guidance of the Renewable Energy Development Department of the State Energy Corporation "Turkmenenergo", solar and wind energy projects are being implemented. An important step was the establishment of the Scientific and Production Center for Renewable Energy Sources in Mary, which is engaged in training and research of new technologies.
In the area of energy efficiency, a significant achievement was the construction of combined cycle power plants. Following the successful launch of a 1,574 MW power plant at Mary HPP in 2018, construction of a similar plant in Balkan province started in November 2023, with work actively continuing in 2024.
Digital Transformation
The year 2024 became a landmark period in the process of digital transformation of Turkmenistan's economy, especially in the sphere of banking services and financial technologies. The implementation of the "State Program for the Development of Digital Economy of Turkmenistan for 2021-2025" led to a significant expansion of the range of digital services and technological solutions.
The banking sector has demonstrated impressive progress in the implementation of modern digital services. By December 1, 2024, the remote banking service "Menzilara-bank" was used by more than 24.1 thousand customers for transactions with VISA and MasterCard international payment cards, and more than 6.3 thousand customers used it to pay for educational services. The service "Onlaýn halkara töleg" of the State Commercial Bank "Türkmenistan" attracted about 1.4 thousand users.
The innovative system "Sanly karz" launched by Joint Stock Commercial Bank "Halkbank" in July 2024 deserves special attention. Only during the first five months of its operation 7054 clients used the system and received loans totaling AZN 23168.4 thousand. Mobile application "Halkbank-terminal" provided non-cash settlements amounting to AZN 210.6 million in January-November 2024, which exceeded the indicators of the same period of the previous year by 3.8%.
A significant achievement in the digital transformation of the urban environment was the development of the smart city of Arkadag, which received the status of a city of national importance. This innovative project, which includes about 340 objects, demonstrates the successful implementation of digital technologies and smart systems in the urban infrastructure.
In the scientific and educational sphere, an important step was the development of the International Scientific and Technological Park of the Academy of Sciences of Turkmenistan, which has become a center for the development and implementation of innovative technologies. The park actively promotes the development of scientific research and the competitiveness of achievements of Turkmen scientists, as well as the involvement of small and medium-sized businesses in innovation projects.
These achievements create a solid foundation for further digital transformation of Turkmenistan's economy and increasing its competitiveness at the international level.
The year 2024 was a period of significant economic achievements and structural transformations for Turkmenistan. Stable GDP growth at the level of 6.3% throughout the year testifies to the sustainability of the country's economic model and the effectiveness of the implemented reforms.
Particularly indicative was the strengthening of the role of the private sector, whose share exceeded 70% of GDP in the non-energy sector, which demonstrates the success of the economic diversification policy. International cooperation has reached a new level, as evidenced by large-scale investment projects with partners from China, Japan, the USA and Turkey.
The development of transport and logistics infrastructure and the modernization of the fuel and energy complex have strengthened Turkmenistan's position as an important regional player. In parallel, the active introduction of digital technologies, especially in the banking sector, has created a solid basis for further technological modernization of the economy.
All these achievements, supported by specific growth indicators in all key sectors, form favorable conditions for further sustainable development of the country and improving the welfare of its citizens. The results of 2024 not only demonstrate the success of the chosen economic course, but also create a solid foundation for the realization of long-term strategic development goals of Turkmenistan.
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