With one of the world's largest natural gas reserves, Turkmenistan had relatively good initial conditions for a transition economy. However, its rich natural gas reserves have not been able to fulfill their potential until today. Following independence, Turkmenistan faced severe economic conditions, as in similar countries. However, oil and natural gas resources have made this process softer, albeit partially. The most negative impact of underground resources in this process has been the dependence on the natural gas sector, leaving the economy vulnerable to external shocks. The energy sector is as important for the country's economic development and sustainable growth today as it was during the Soviet era. In addition to its economic contributions, the structure of the energy sector in Turkmenistan also poses some challenges and risks for the macroeconomy. New opportunities for the development of the sector have emerged since independence, but also dangers such as financing problems and loss of market space. In order to increase added value in the energy sector, high costs have to be incurred. Therefore, securing international support for access to low-cost financing and attracting foreign investment requires convergence to free market conditions. For this reason, the correct determination of economic policies, and policies and strategies for the energy sector in particular, will increase macroeconomic effects and is of critical importance for the economic stability and sustainability of the country.

In this study, Turkmenistan's thirty-year macroeconomic performance, including the transition from a centrally planned economy to a free market economy, will be discussed in the light of the data available mostly based on forecasts. In parallel to this, the macroeconomic dynamism of the energy sector and the position of the country in the international arena will be evaluated.