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Turkmenistan

Introduction Key Economic Facts Risk Assessment (Provided by Coface) Turkmenistan is a country located in Central bordering Income Level (by per capita Upper Middle Income Country rating: D - A high-risk political and economic the . Neighboring countries include GNI): situation and an often very difficult business environment , , , and . The Level of Development: In Transition can have a very significant impact on corporate payment geography of Turkmenistan largely GDP, PPP (current international $88.97 billion (2018) consists of the and $): behavior. Corporate default probability is very high. mountains in the southern region. GDP growth (annual %): 6.20% (2018) Business Climate rating: E - The highest possible risk in Turkmenistan defines the government GDP per capita, PPP (current $15,206.96 (2018) terms of business climate. Due to a lack of available system as a secular democracy and a international $): financial information and an unpredictable legal system, presidential , but in actuality the country displays External debt stocks, total $567,628,378.20 (2019) doing business in this country is extremely difficult. authoritarian presidential rule, with power concentrated (DOD, current US$): within the presidential administration. The chief of state and Manufacturing, value added (% 43.48% (2012) Strengths is the of GDP): • Fourth largest reserves in the president. Turkmenistan has a Current account balance (BoP, -$0.58 billion (1997) (nearly 10% of the total) current US$): planned economy due to • Strategic position in and between government control of most of Labor force, total: 2,687,113 (2020) on the one hand, and and Europe, via the the economy, although there is Unemployment, total (% of 4.07% (2020) limited private sector total labor force) (modeled ILO Caspian Sea, on the other estimate): development. • Healthy public accounts and a moderate level of debt Imports of goods and services $5.09 billion (2018) (current US$): • Obtained observer status at the World Trade Location: Central Asia Exports of goods and services $9.24 billion (2018) Organisation (WTO) in 2020, with the intention of Capital : (+5 GMT) (current US$): commencing accession negotiations by 2025 Chief of State: President Gurbanguly Weaknesses Berdimuhamedow • High dependence on hydrocarbons (93% of exports, Head of Govt.: President Gurbanguly GDP Composition % Berdimuhamedow Agriculture Services Industry Manufacturing of which 83% gas), while the levers for export growth Currency: Turkmen Manat (TMT) remain constrained Major Languages:

Turkmen (official) 72%, Russian 57 • Strong dependence on China (which receives nearly 12%, Uzbek 9%, other 7%

9 0 0 80% of gas exports) Primary Religions:

Muslim 89%, Eastern Orthodox 9%, unknown 2%

*Although Manufacturing is included in the Industry figures, it is also separately • Low share of private sector, anticompetitive market Calling Code: 993 reported because it plays a critical role in economy. structures (State monopolies dominating the Rankings Voltage: 220 economy, credit and investment management) Index Rank • Very difficult business climate, tight trade, price and Key Websites Corruption Perceptions Index 165 / 180 foreign exchange restrictions and controls that Index of Economic Freedom 163 / 179 Main Government Page: turkmenistan.gov.tm hamper FDI International Logistics Performance Index (LPI) 126 / 160 KOF Index of Globalization 174 / 185 • Poor infrastructure (especially transport and health) and underdeveloped regional connectivity • Weak governance (corruption, , repression, politicization of the judiciary, opacity of the statistics system) • Porous border with Afghanistan (presence of the ) and weak resources U.S. Embassy U.S. Embassy Ashgabat 9 1984 Street (formerly Pushkin Street) Ashgabat, Turkmenistan 744000

Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV Turkmenistan

Phone: (+99312) 940045 https://tm.usembassy.gov

Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV