Turkmenistan

Situated at the heart of the Eurasian continent, Turkmenistan graduated from lower-middle-income to upper-middle-income country status in 2012. While the shift was due to its vast gas reserves, the world’s fourth-largest, corresponding to approximately 10% of the global total, a significant portion of Turkmenistan’s population still grapples with poverty. The country’s autocratic governance and heavy state involvement in key economic sectors have hindered much-needed structural reforms, impeded broad-based economic growth, and stifled foreign direct investment (FDI) outside the hydrocarbon sector.

Compounding the difficulty, China and Russia remain the primary markets for its energy exports, making Turkmenistan vulnerable to their political influence, and weakening its bargaining position. Other weaknesses include inadequate infrastructure, lack of skilled labor, and a small and unsophisticated banking sector.