Economy

Tajikistan was the poorest country in Central Asia following a civil war in 1991. With foreign revenue precariously dependent upon exports of cotton and aluminium, the economy is highly vulnerable to external shocks. In fiscal year (FY) 2000, international assistance remained and essential source of support for rehabilitation programs that reintegrated former civil war combatants into the civilian economy, thus helping keep the peace. International assistance also was necessary to address the second year of severe drought that resulted in a continued shortfall of food production.

Overview

Despite resistance from vested interests, the Government of Tajikistan continued to pursue macroeconomic stabilization and structural reform in FY 2000. In December 1999, the government announced that small-enterprise privatisation had been successfully completed, and the privatisation of medium-sized and large-owned enterprises (SOEs) continued incrementally. The continued privatisation of medium-sized and large SOEs, land reform, and banking reform and restructuring remain top priorities. Shortly after the end of FY 2000, the Board of the International Monetary Fund gave its vote of confidence to the government's recent performance by approving the third annual Poverty Reduction and Growth Facility Loan for Tajikistan. Improved fiscal discipline by the Government of Tajikistan has supported the return to positive economic growth. The government budget was nearly in balance in 2001 and the government's 2002 budget targets a fiscal deficit of 0.3% of GDP, including recent increases in social sector spending. The GDP of Tajikistan expanded at an average rate of 9.6% over the period of 2000-2004. This improved Tajikistan's position among other Central Asian countries (namely Turkmenistan and Uzbekistan), which have degraded economically ever since. As of March 2007, 57% of Tajikistan citizens live below the poverty line.

Facts and Figures

• GDP:
  • Purchasing power parity: $9.521 billion
  • Official exchange rate: $2.066 billion
  • Real growth rate: 7%
  • Per capita (PPP): $1,300
  • Composition by sector:
    • Agriculture: 22.7%
    • Industry: 28.5%
    • Services: 48.8%
• Labour force:
  • Total: 3.7 million
  • By occupation:
    • Agriculture: 67.2%
    • Industry: 7.5%
    • Services: 25.3%
• Unemployment rate: 12%
• Population below poverty line: 64%
• Household income or consumption by percentage share:
  • Lowest 10%: 3.2%
  • Highest 10%: 25.2%
• Inflation rate (consumer prices): 7.5%
• Investment (gross fixed): 19.9% of GDP
• Budget:
  • Revenues: $527.5 million
  • Expenditures: $622 million; including capital expenditures of $86 million
• Agriculture Products:
  • Cotton
  • Grain
  • Fruits
  • Grapes
  • Vegetables
  • Cattle
  • Sheep
  • Goats
• Industries:
  • Aluminium
  • Zinc
  • Lead
  • Chemicals and fertilizers
  • Cement
  • Vegetable oil
  • Metal-cutting machine tools
  • Refrigerators and freezers
• Industrial production growth rate: 8.2%
• Electricity:
  • Production: 16.5 billion kWh
  • Consumption: 15.7 billion kWh
  • Exports: 4.459 billion kWh
  • Imports: 4.81 billion kWh
• Oil:
  • Production: 252.8 bbl/day
  • Consumption: 28,000 bbl/day
• Natural gas:
  • Production: 39 million cu m
  • Consumption: 1.389 billion cu m
  • Exports: 0 cu m
  • Imports: 1.35 billion cu m
• Current account balance: -$73.95 million
• Exports:
  • Total: $1.16 billion f.o.b.
  • Commodities:
    • Aluminium
    • Electricity
    • Cotton
    • Fruits
    • Vegetable oil
    • Textiles
  • Partners:
    • Netherlands 46.6%
    • Turkey 15.8%
    • Russia 9.1%
    • Uzbekistan 7.3%
    • Latvia 4.9%
    • Iran 4%
• Imports:
  • Total: $1.513 billion f.o.b.
  • Commodities:
    • Electricity
    • Petroleum products
    • Aluminium oxide
    • Machinery and equipment
    • Foodstuffs
  • Partners:
    • Russia 19.3%
    • Kazakhstan 12.7%
    • Uzbekistan 11.5%
    • Azerbaijan 8.6%
    • China 7%
    • Ukraine 6.2%
    • Romania 4.6%
    • Turkmenistan 4%
• Reserves of foreign exchange and gold: $209.2 million
• Debt - external: $829 million
• Economic aid - recipient: $67 million from US
• Currency (code): somoni (TJS)