Service sector of Turkmenistan shows good growth rate

Over 50% of the GDP structure of the country is the gross value added of the service industries, said expert Trapeznikov.

The global trend in the development of the economies of developed and developing countries is the predominance of the service sector in the structure of the gross domestic product (GDP). Turkmenistan is no exception to this trend. The topic was raised by the observer of Turkmenistan’s economy Valentin Trapeznikov within an interview to CentralAsia.news.

GVA of service industries

In recent years, more than half of the country’s GDP is accounted for by the gross value added created by the service industries — the communications sector (transport and communications), trade, and other types of services. According to the State Statistics Committee for 11 months of 2020, their total share in GDP was 50,5%. Compared to 2019, the average growth rate of gross value added (GVA) in these sectors of the economy within comparable prices amounted to 9,3%. It is significantly more than in industry (3.0%), agriculture (5.6%), and construction (0.3%).

The structure of the gross value added of the service industries in 2020 was distributed as follows: trade — 36,5%, transport, and communications — 21,1%, other types of services — 42,4%. For the same period of the previous year, these indicators were, respectively, — 32,2%, 22,2%, and 45,6%. Thus, in 2020, the share of the trade sector in the structure of GVA increased, and the share of other services, on the contrary, decreased, while the share of the communications sector remained practically unchanged.

Trade

Among the sectors providing services for the above period, the highest growth rate of gross value added in comparable prices was demonstrated in trade — 15,5%. The share of this industry in the GDP was 18,4%. Moreover, about 91,5% of the gross value added of trade was created by the non-state sector of the economy.

The determining factor of the growth of GVA in trade is the increase in retail turnover, the growth of which in the country amounted to 18,1%. At the same time, in the private sector this indicator is 19,3%, and within trading enterprises of ministries and departments — 2,0%.

Communication sector

In the communication sector — transport and communications — the growth rate of gross value added in comparable prices amounted to 4,7%, and their share in the structure of the country’s GDP — 10,6%.

It should be noted that the transport complex, due to the restrictions caused by the coronavirus pandemic, turned out to be the most susceptible to external negative influences, which, naturally, affected its performance. For several transport sectors (water, air and, partly, railway transport), there was a decrease in the transportation of goods and passengers, as well as in freight and passenger traffic. It significantly influenced, first of all, the level of GVA growth rates towards their decrease.

Other service sectors produced 6,6% more gross value added in comparable prices than in the previous year.

Good indicators amid a pandemic

Thus, despite the negative external influences, the economy of our country and, in particular, the service sector, in the past year showed good dynamics of development. High indicators have been achieved thanks to timely preventive measures taken in the financial, credit, investment, and tax spheres, the implementation of national and sectoral development programs, state support for small and medium-sized businesses, and, of course, the selfless work of the people of Turkmenistan.

24 фев 2021, 08:48

Valentin Trapeznikov

Photo source: CentralAsia.news

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