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Economy of Tajikistan

Tajikistan is the poorest CIS country and one of the poorest countries in the world. With foreign revenue precariously dependent upon exports of cotton and aluminum, the economy is highly vulnerable to external shocks. In 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.

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 privatization had been successfully completed, and the privatization of medium-sized and large-owned enterprises (SOEs) continued incrementally. The continued privatization 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.

Economy - overview: Tajikistan has the lowest per capita GDP among the 15 former Soviet republics. Cotton is the most important crop. Mineral resources, varied but limited in amount, include silver, gold, uranium, and tungsten. Industry consists only of a large aluminum plant, hydropower facilities, and small obsolete factories mostly in light industry and food processing. The Tajikistani economy has been gravely weakened by six years of civil conflict and by the loss of subsidies from Moscow and of markets for its products. Tajikistan thus depends on aid from Russia and Uzbekistan and on international humanitarian assistance for much of its basic subsistence needs. Even if the peace agreement of June 1997 is honored, the country faces major problems in integrating refugees and former combatants into the economy. The future of Tajikistan's economy and the potential for attracting foreign investment depend upon stability and continued progress in the peace process.

GDP: purchasing power parity - $6.2 billion (1999 est.)

GDP - real growth rate: 2% (1999 est.)

GDP - per capita: purchasing power parity - $1,020 (1999 est.)

GDP - composition by sector:
agriculture: 34%
industry: 24%
services: 42% (1997)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): 22% (1999 est.)

Labor force: 1.9 million (1996)

Labor force - by occupation: agriculture and forestry 50%, industry 20%, services 30% (1997 est.)

Unemployment rate: 5.7% includes only officially registered unemployed; also large numbers of underemployed workers and unregistered unemployed people (December 1998)

Budget:
revenues: $NA
expenditures: $NA, including capital expenditures of $NA

Industries: aluminum, zinc, lead, chemicals and fertilizers, cement, vegetable oil, metal-cutting machine tools, refrigerators and freezers

Industrial production growth rate: 5% (1999 est.)

Electricity - production: 13.27 billion kWh (1998)

Electricity - production by source:
fossil fuel: 1.51%
hydro: 98.49%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 12.561 billion kWh (1998)

Electricity - exports: 3.33 billion kWh (1998)

Electricity - imports: 3.55 billion kWh (1998)

Agriculture - products: cotton, grain, fruits, grapes, vegetables; cattle, sheep, goats

Exports: $634 million (1999 est.)

Exports - commodities: aluminum, electricity, cotton, fruits, vegetable oil, textiles

Exports - partners: Uzbekistan 37%, Liechtenstein 26%, Russia 16%, Kazakhstan 6% (1997)

Imports: $770 million (1999 est.)

Imports - commodities: electricity, petroleum products, aluminum oxide, machinery and equipment, foodstuffs

Imports - partners: Netherlands 32%, Uzbekistan 29%, Switzerland 20%, Russia 9% (1997)

Debt - external: $1.3 billion (1999 est.)

Economic aid - recipient: $64.7 million (1995)

Currency: Tajikistani Somoni (TJS) = 100 Diram

Exchange rates: Tajikistani rubles (TJR) per US$1 - 1550 (January 2000), 998 (January 1999), 350 (January 1997), 284 (January 1996) Tajikistani Somoni (TJS) per US$1 - 3.0680 ( Feb 2003 )

Fiscal year: calendar year

See also : Tajikistan