BMI View: Construction sector growth in Turkmenistan will outpace the CEE average in the coming years,even as the country weathers a period of comparatively lacklustre economic growth. Elevated levels ofcorruption will continue to serve as a deterrent to international investment and forms the main downsiderisk to our otherwise positive outlook.
Forecast & Industry Developments
Turkmenistan's project pipeline remains dominated by industrial construction projects, which in largepart reflects the primacy of the country's energy sector in its broader economy. An analysis of our KeyProjects Database indicates that industrial construction accounts for an outsized 63% of projects currentlymoving through the pipeline.
Economic headwinds - due to falling government revenues stemming from lower gas prices - willdampen construction industry growth over the long term, with our forecasts placing average growth at6.7% over 2017-2026, down from 13.8% in the previous decade.