Tajikistan Economy 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. 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, 7% in 2006, and 7.2% in 2007. Tajikistan's economic situation 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. Russian investment in the Sangtuda I hydropower dam, set to go online late 2007 or early 2008, will increase production of electricity for domestic consumption. The completion of Sangtuda II and Rogun dams would substantially add to electricity output, which could also be exported for profit. If finished, Rogun will be the world's tallest dam. Tajikistan was also the recipient of substantial infrastructure development credits from the Shanghai Cooperation Organization 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):
$2.267 billion (2007 est.)

GDP - real growth rate:
7.2% (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.)

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):
9.8% (2007 est.)

Investment (gross fixed):
13.4% of GDP (2007 est.)

Budget:
revenues: $614.8 million
expenditures: $756.9 million (2007 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:
5% (2007 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:
282.1 bbl/day (2005 est.)

Oil - consumption:
30,000 bbl/day (2005 est.)

Oil - exports:
305.8 bbl/day (2004)

Oil - imports:
29,480 bbl/day (2004)

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

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)

natural gas - proved reserves:
5.432 billion cu m (1 January 2006 est.)

Current account balance:
-$102 million (2007 est.)

Exports:
$1.736 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:
$2.357 billion f.o.b. (2007 est.)

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:
$301 million (31 December 2007 est.)

Debt - external:
$1.308 billion (31 December 2007 est.)

Market value of publicly traded shares:
$NA

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)