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    Economics Finance Tajikistan

    Tajikistan’s GDP to experience 6.5% growth in 2024 and 2025, ADB forecasts

    Tajikistan’s GDP to experience 6.5% growth in 2024 and 2025, ADB forecasts

    Tajikistan to see its annual GDP growth rate at 6.5% for both 2024 and 2025, the Asian Development Bank's (ADB) reports. This represents a slowdown from the 8.3% growth rate of 2023, due to diminished remittances, fiscal constraints, and a decrease in global demand for the country’s major exports.

    Photo: Tajikistan’s GDP to experience 6.5% growth in 2024 and 2025, ADB forecasts
    Source: Personal Finance Lab

    The report identifies significant environmental and climate challenges that Tajikistan faces, which could impact its economy, society, and environment. A notable concern is the scarcity of arable land coupled with a reliance on food imports, alongside the depletion of about 20% of its glaciers over the past 34 years, critically affecting hydropower generation. 

    In response, the Tajik government, with the support of ADB, ratified the Green Economy Development Strategy (GEDS) valid through 2027. This strategy prioritizes energy efficiency, waste management, and ecotourism, aiming to increase renewable energy capacity to 10,000 MW and achieve universal green electricity generation with net-zero emissions by 2037.

    The ADO report recommends the implementation of climate-friendly policies and the development of a comprehensive climate fiscal framework to enhance the planning, budgeting, and implementation of the GEDS. It also suggests the integration of green economy principles into public procurement policies and construction standards.

    Inflation rates in Tajikistan are projected at 5.5% for 2024 and 6.5% for 2025. These estimates account for currency interventions aimed at managing inflation and stabilizing the exchange rate. The expected rise in inflation is linked to an increase in lending following deposit growth, a 40% enhancement in pensions, stipends, and public sector salaries from January 1, 2024, and a 16% adjustment in electricity tariffs introduced at the beginning of the year.

    Established in 1966 and comprising 68 members, 49 of which are from the region, the ADB is dedicated to supporting a prosperous, inclusive, resilient, and sustainable Asia-Pacific, while continuing its efforts to eliminate extreme poverty. The bank plays a crucial role in assisting Tajikistan's economic and environmental sustainability initiatives.

     

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    11.04.2024, 13:00   Comments (0)   2441
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