Turkmen gas-fuelled GDP rises 14.5% in Jan-May, senior officials rebuked as gas output, exports rise.

Source: Reuters

ASHGABAT – Turkmenistan’s economy, which depends heavily on exports of natural gas, grew by 14.5% in January-May in year-on-year terms, state media on Saturday quoted President Kurbanguly Berdymukhamedov as saying.

“The results of the first five months show that the national economy continues to develop at a fast pace, with gross domestic product growing steadily, having risen by 14.5% during this period”, Berdymukhamedov was quoted as saying during a government meeting late on Friday. He had said earlier that the country’s GDP expanded by 14.4% in the first quarter of 2011 and by 9.2% in 2010.

The European Bank for Reconstruction and Development said in its latest economic forecast for former communist nations last month it expected Turkmenistan’s GDP to grow 10% this year and next. It said Turkmen GDP rose 9.2% in 2010.

Turkmenistan, which depends heavily on gas exports to former Soviet Union power Russia, pins hopes of its future prosperity on tripling natural gas output to 230 billion m³ by 2030, of which it plans to export 180 bcm.

While volumes purchased by Russia have fallen drastically, the country aims to boost exports to China and Iran via its existing pipelines and seeks alternative routes to Europe and to India via Afghanistan and Pakistan. Turkmenistan’s natural gas output grew 40% in January-May in year-on-year terms, while its exports rose 78.3%, Baymyrad Hojamuhamedov, deputy chairman of the cabinet of ministers, told the same meeting with Berdymukhamedov.