Turkmenistan is classified as an upper-middle-income country.
This classification signifies that Turkmenistan is neither among the world's poorest nations nor one of its wealthiest. Instead, it occupies an intermediate position in the global economic hierarchy based on its economic development and income per capita.
Understanding Turkmenistan's Economic Standing
Centrally located in the Eurasian continent, Turkmenistan achieved its current economic status by progressing from lower-middle-income to upper-middle-income country status in 2012. This graduation reflects a notable improvement in its Gross National Income (GNI) per capita, which is a key metric used by international organizations to categorize economies worldwide.
What Does 'Upper-Middle-Income' Signify?
The term "upper-middle-income country" is a designation used by institutions like the World Bank to categorize nations based on their GNI per capita. For economies in this category, it typically implies:
- Moderate Development: These countries are usually in a phase of significant economic transformation, often characterized by ongoing industrialization, urbanization, and a shift away from predominantly agricultural economies.
- Improving Living Standards: While challenges related to income inequality, infrastructure, and access to services may still exist, the overall living standards for citizens are generally higher, and poverty rates are lower compared to lower-income nations.
- Economic Drivers: Many upper-middle-income economies, including Turkmenistan, often possess significant natural resources (such as natural gas in Turkmenistan's case) that contribute substantially to their national income and economic growth.
- Development Trajectory: They are generally seen as being on a path towards further economic advancement, though they may still require substantial investment in human capital and diversified industries to reach high-income status.
In summary, while Turkmenistan is not considered "rich" in the same vein as high-income developed nations, its upper-middle-income status places it well above the world's poorest countries, indicating a substantial level of economic development and a higher average income for its population. For more details on income classifications, you can refer to the World Bank's country and lending groups.
