Tajikistan Economy Profile 2008

Economy - overview

Tajikistan has one of the lowest per capita GDPs among the 15 former Soviet republics. Only 7% of the land area is arable. Cotton is the most important crop, but this sector is burdened with debt and an obsolete infrastructure. Mineral resources 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 civil war (1992-97) severely damaged the already weak economic infrastructure and caused a sharp decline in industrial and agricultural production. While Tajikistan has experienced steady economic growth since 1997, nearly two-thirds of the population continues to live in abject poverty. Economic growth reached 10.6% in 2004, but dropped to 8% in 2005, 7% in 2006, and 7.8% in 2007. Tajikistan's economic situation remains fragile due to uneven implementation of structural reforms, corruption, weak governance, widespread unemployment, seasonal power shortages, and the external debt burden. Continued privatization of medium and large state-owned enterprises could increase productivity. A debt restructuring agreement was reached with Russia in December 2002 including a $250 million write-off of Tajikistan's $300 million debt. Tajikistan ranks third in the world in terms of water resources per head, but suffers winter power shortages due to poor management of water levels in rivers and reservoirs. Completion of the Sangtuda I hydropower dam - built with Russian investment - and the Sangtuda II and Rogun dams will add substantially to electricity output. If finished according to Tajik plans, Rogun will be the world's tallest dam. Tajikistan has also received substantial infrastructure development loans from the Chinese government to improve roads and an electricity transmission network. To help increase north-south trade, the US funded a $36 million bridge which opened in August 2007 and links Tajikistan and Afghanistan.

GDP (purchasing power parity)

$11.87 billion (2007 est.)

GDP (official exchange rate)

$3.7 billion (2007 est.)

GDP - real growth rate

7.8% (2007 est.)

GDP - per capita (PPP)

$1,600 (2007 est.)

GDP - composition by sector

agriculture: 23.6%
industry: 30.6%
services: 45.8% (2007 est.)

Population below poverty line

60% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 3.3%
highest 10%: 25.6% (2007 est.)

Inflation rate (consumer prices)

20% (2007 est.)

Investment (gross fixed)

15% of GDP (2007 est.)

Labor force

2.1 million (2007 est.)

Labor force - by occupation

agriculture: 67.2%
industry: 7.5%
services: 25.3% (2000 est.)

Unemployment rate

2.4% official rate; actual unemployment is higher (2007 est.)

Distribution of family income - Gini index

32.6 (2003)

Budget

revenues: $700 million
expenditures: $673 million (2007 est.)

Industries

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

Industrial production growth rate

9% (2007 est.)

Electricity - production

17.4 billion kWh (2007)

Electricity - consumption

17.9 billion kWh (2007)

Electricity - exports

4.259 billion kWh (2007)

Electricity - imports

4.36 billion kWh (2007)

Oil - production

282.1 bbl/day (2005 est.)

Oil - consumption

8,000 bbl/day (2007 est.)

Oil - imports

7,600 bbl/day (2007 est.)

Oil - exports

0 bbl/day (2007)

Oil - proved reserves

12 million bbl (1 January 2006 est.)

Natural gas - production

39.32 million cu m (2005 est.)

Natural gas - consumption

689 million cu m (2007 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

650 million cu m (2007)

Natural gas - proved reserves

5.432 billion cu m (1 January 2006 est.)

Current Account Balance

-$102 million (2007 est.)

Agriculture - products

cotton, grain, fruits, grapes, vegetables; cattle, sheep, goats

Exports

$1.468 billion f.o.b. (2007 est.)

Exports - commodities

aluminum, electricity, cotton, fruits, vegetable oil, textiles

Exports - partners

Netherlands 40.7%, Turkey 31.7%, Iran 5.4%, Uzbekistan 4.8%, Russia 4.7% (2006)

Imports

$2.455 billion f.o.b. (2007 est.)

Imports - commodities

electricity, petroleum products, aluminum oxide, machinery and equipment, foodstuffs

Imports - partners

Russia 24.6%, Kazakhstan 10.8%, Uzbekistan 10.2%, China 8.6%, Azerbaijan 8% (2006)

Reserves of foreign exchange and gold

$301 million (31 December 2007 est.)

Debt - external

$1.308 billion (31 December 2007 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$241.4 million from US (2005)

Currency (code)

somoni (TJS)

Exchange rates

Tajikistani somoni per US dollar - 3.4418 (2007), 3.3 (2006), 3.1166 (2005), 2.9705 (2004), 3.0614 (2003)

Fiscal year

calendar year