Economy

Tajikistan is a landlocked country in Central Asia, bordered by Afghanistan to the south, China to the east, Kyrgyzstan to the north and Uzbekistan to the west and northwest. With a population of around 11 million, it is the poorest country in Central Asia: GDP per capita is roughly

Tajikistan is a landlocked country in Central Asia, bordered by Afghanistan to the south, China to the east, Kyrgyzstan to the north and Uzbekistan to the west and northwest. With a population of around 11 million, it is the poorest country in Central Asia: GDP per capita is roughly $1,900, or about $6,600 once adjusted for purchasing power. It holds substantial natural resources, including hydroelectric potential, minerals and natural gas, but the economy remains underdeveloped and heavily dependent on external assistance and on money sent home from abroad.

Economic History

Tajikistan became independent in 1991, after the collapse of the Soviet Union. The civil war that ran from 1992 to 1997 destroyed much of the economy and infrastructure, and the end of the war marked the beginning of a slow recovery supported by international aid. The global financial crisis of 2008, and the subsequent slowdown in Russia, the main source of remittances, set that recovery back.

Agriculture

Agriculture employs over half the population and accounts for around 25% of GDP. The main crops are cotton, wheat, rice, fruit and vegetables. The sector is underdeveloped and poorly managed, and the government has sought investment to raise productivity and competitiveness. Cotton in particular remains a state priority, and much of the irrigated land in the lowlands is given over to it.

Remittances

Remittances account for around 40% of GDP, one of the highest shares anywhere in the world. Over 1 million Tajik citizens work abroad, mostly in Russia, and send home money that supports their families directly rather than passing through the domestic economy. This makes Tajikistan acutely sensitive to economic conditions in Russia, and to changes in Russian migration policy. The government has tried to reduce that dependence by promoting job creation at home.

Mining and Energy

The country has large deposits of coal, gold, silver and other minerals, along with considerable hydroelectric potential. It has actively sought investment in mining and energy and has attracted foreign money into the construction of several hydroelectric plants, the Rogun project among them. The sector nonetheless remains underdeveloped and dependent on outside investment.

Services

Services, including retail, wholesale and finance, form one of the fastest-growing parts of the economy and account for around 45% of GDP. The government has worked to improve the business environment by reducing bureaucracy and has drawn in some foreign investment. The sector is still small and underdeveloped by regional standards.

Outlook

The economy has grown steadily in recent years, at an average of around 6% annually. The government has pursued reforms aimed at improving the business environment and has attracted investment in energy and mining in particular. Growth is expected to continue, though it depends on conditions in Russia as much as on policy at home, and the underlying weaknesses, thin infrastructure and a difficult business environment, have not gone away.

,900, or about $6,600 once adjusted for purchasing power. It holds substantial natural resources, including hydroelectric potential, minerals and natural gas, but the economy remains underdeveloped and heavily dependent on external assistance and on money sent home from abroad.

Economic History#

Tajikistan became independent in 1991, after the collapse of the Soviet Union. The civil war that ran from 1992 to 1997 destroyed much of the economy and infrastructure, and the end of the war marked the beginning of a slow recovery supported by international aid. The global financial crisis of 2008, and the subsequent slowdown in Russia, the main source of remittances, set that recovery back.

Agriculture#

Agriculture employs over half the population and accounts for around 25% of GDP. The main crops are cotton, wheat, rice, fruit and vegetables. The sector is underdeveloped and poorly managed, and the government has sought investment to raise productivity and competitiveness. Cotton in particular remains a state priority, and much of the irrigated land in the lowlands is given over to it.

Remittances#

Remittances account for around 40% of GDP, one of the highest shares anywhere in the world. Over 1 million Tajik citizens work abroad, mostly in Russia, and send home money that supports their families directly rather than passing through the domestic economy. This makes Tajikistan acutely sensitive to economic conditions in Russia, and to changes in Russian migration policy. The government has tried to reduce that dependence by promoting job creation at home.

Mining and Energy#

The country has large deposits of coal, gold, silver and other minerals, along with considerable hydroelectric potential. It has actively sought investment in mining and energy and has attracted foreign money into the construction of several hydroelectric plants, the Rogun project among them. The sector nonetheless remains underdeveloped and dependent on outside investment.

Services#

Services, including retail, wholesale and finance, form one of the fastest-growing parts of the economy and account for around 45% of GDP. The government has worked to improve the business environment by reducing bureaucracy and has drawn in some foreign investment. The sector is still small and underdeveloped by regional standards.

Outlook#

The economy has grown steadily in recent years, at an average of around 6% annually. The government has pursued reforms aimed at improving the business environment and has attracted investment in energy and mining in particular. Growth is expected to continue, though it depends on conditions in Russia as much as on policy at home, and the underlying weaknesses, thin infrastructure and a difficult business environment, have not gone away.