Economic Factors Affecting Tajikistan
Economic factor affected in Tajikistan:
Tajikistan has grown a lot since 1997. The ongoing privatising of small and large businesses and factories still provides for an enormous growth. More and more people return to their homeland, since there is peace and the threat connected to war has gone.
In the second part of 1997, the macroeconomics came to balance. Trade was extended, and the prices were no longer controlled by the state. The budget holes were reduced to a minimum, and the regular currency range was re-established.
In 1998, an economical plan was established with the help of international organizations. The program aims towards structural changes in the economy, the creation of acceptable conditions concerning growth and export, help for the private sector and foreign investors, and the maximization of farming and industry.
The cotton monopoly, held by the state, was abolished. Together with the World Bank, E.B.R.D., IFC and other organizations, some privatizing projects were started or offered help.
GDP grew by 7.5% in, the same as in 2012 but exceeding expectations given the slowdown in Russian growth and a well-flagged 2.8% decline in aluminums output because of shortages of natural gas. Activity continues to be driven by remittances, retail trade and services.
GDP is forecast to grow by about 6% pa, though the economy remains vulnerable to external shocks given a narrow export base, low foreign reserves and limited fiscal buffers. Inflation has fallen steadily in 2013, hitting a low of 4.6% in August. This reflects falling global food prices and a stable exchange rate that has helped to moderate inflationary expectations. In addition, the authorities remain committed to prudent economic policies, even though the key refinancing rate was cut to 6.1% in July. After an estimated 5.5% in 2013, we expect inflation to rise to 6% in 2014. The current account deficit fell from 12% of GDP in 2011 to just 3.4% in 2012 and we expect it
Tajikistan has grown a lot since 1997. The ongoing privatising of small and large businesses and factories still provides for an enormous growth. More and more people return to their homeland, since there is peace and the threat connected to war has gone.
In the second part of 1997, the macroeconomics came to balance. Trade was extended, and the prices were no longer controlled by the state. The budget holes were reduced to a minimum, and the regular currency range was re-established.
In 1998, an economical plan was established with the help of international organizations. The program aims towards structural changes in the economy, the creation of acceptable conditions concerning growth and export, help for the private sector and foreign investors, and the maximization of farming and industry.
The cotton monopoly, held by the state, was abolished. Together with the World Bank, E.B.R.D., IFC and other organizations, some privatizing projects were started or offered help.
GDP grew by 7.5% in, the same as in 2012 but exceeding expectations given the slowdown in Russian growth and a well-flagged 2.8% decline in aluminums output because of shortages of natural gas. Activity continues to be driven by remittances, retail trade and services.
GDP is forecast to grow by about 6% pa, though the economy remains vulnerable to external shocks given a narrow export base, low foreign reserves and limited fiscal buffers. Inflation has fallen steadily in 2013, hitting a low of 4.6% in August. This reflects falling global food prices and a stable exchange rate that has helped to moderate inflationary expectations. In addition, the authorities remain committed to prudent economic policies, even though the key refinancing rate was cut to 6.1% in July. After an estimated 5.5% in 2013, we expect inflation to rise to 6% in 2014. The current account deficit fell from 12% of GDP in 2011 to just 3.4% in 2012 and we expect it