Tajikistan Economy 2007

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. 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 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 and to 7% in 2006. Tajikistan's economic situation, however, remains fragile due to uneven implementation of structural reforms, weak governance, widespread unemployment, 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. A proposed investment to finish the hydropower dams Rogun and Sangtuda I and II would substantially add to electricity production, which could be exported for profit. If finished, Rogun will be the world's tallest dam. In 2006, Tajikistan was the recipient of substantial infrastructure development credits from the Shanghai Cooperation Organization to improve its roads and electricity transmission network. To help increase north-south trade, the US is constructing a $36 million bridge linking Tajikistan and Afghanistan.

GDP (purchasing power parity):
$9.521 billion (2006 est.)

GDP (official exchange rate):
$2.066 billion (2006 est.)

GDP - real growth rate:
7% (2006 est.)

GDP - per capita (PPP):
$1,300 (2006 est.)

GDP - composition by sector:
agriculture: 23%
industry: 28%
services: 49% (2006 est.)

Labor force:
3.7 million (2003)

Labor force - by occupation:
agriculture: 67.2%
industry: 7.5%
services: 25.3% (2000 est.)

Unemployment rate:
12% (2004 est.)

Population below poverty line:
64% (2004 est.)

Household income or consumption by percentage share:
lowest 10%: 3.3%
highest 10%: 25.6% (2003)

Distribution of family income - Gini index:
32.6 (2003)

Inflation rate (consumer prices):
11.9% (2006 est.)

Investment (gross fixed):
9% of GDP (2006 est.)

Budget:
revenues: $519.3 million
expenditures: $612.4 million (2006 est.)

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

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

Industrial production growth rate:
8.2% (2002 est.)

Electricity - production:
16.89 billion kWh (2005)

Electricity - consumption:
14.66 billion kWh (2005)

Electricity - exports:
4.257 billion kWh (2005)

Electricity - imports:
4.508 billion kWh (2005)

Oil - production:
252.8 bbl/day (2004 est.)

Oil - consumption:
28,000 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
12 million bbl (1 January 2006)

Natural gas - production:
39.32 million cu m (2005 est.)

Natural gas - consumption:
1.371 billion cu m (2005 est.)

Natural gas - exports:
0 cu m (2005 est.)

Natural gas - imports:
1.333 billion cu m (2005)

Current account balance:
$-21.4 million (2006 est.)

Exports:
$1.512 billion f.o.b. (2006 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:
$1.955 billion f.o.b. (2006 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)

Economic aid - recipient:
$241.4 million from US (2005)

Reserves of foreign exchange and gold:
$203.8 million (2006 est.)

Debt - external:
$876 million (2006 est.)

Market value of publicly traded shares:
$NA

Currency (code):
somoni (TJS)

Exchange rates:
Tajikistani somoni per US dollar - 3.3 (2006), 3.1166 (2005), 2.9705 (2004), 3.0614 (2003), 2.7641 (2002)