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President Rahmon Highlights Tajikistan’s Economic Success Amid Regional Challenges

On December 28, 2023, President Emomali Rahmon of Tajikistan addressed the Supreme Assembly, outlining the country’s economic trajectory and the government’s commitment to social obligations and economic as well as social development. The preliminary figures for the year reveal a GDP growth of 8.3 percent, taking the country’s GDP to over 130 billion somoni (approximately $11 billion), along with a 3.8 percent inflation rate.

Allocation for Social Obligations

Rahmon shed light on the allocation of over 40 billion somoni ($3.6 billion) from the state budget towards social obligations and economic development, a notable increase of 5.3 billion somoni ($488 million) from the previous year. Despite the challenges posed by global complexities and climate change, including drought and regional shortages, Rahmon described 2023 as a successful year for the Central Asian nation.

Trade Dynamics

However, the country’s trade turnover with fellow Central Asian nations saw a decrease by 17% in the first 11 months of 2023. There was a 20% reduction in trade with Kazakhstan, a 10.3% reduction with Uzbekistan, a 13.5% reduction with Turkmenistan, and a 21.7% reduction with Kyrgyzstan. Despite these reductions, Tajikistan’s total foreign trade turnover reached around $6.8 billion from January through November 2023, marking a $2.2 billion rise over the same period in 2022. The country’s exports totaled more than $1.6 billion, whereas imports totaled more than $5.1 billion.

Regional Economic Outlook

The World Bank forecasts weak growth in 2023 for countries in its Europe and Central Asia region. The ongoing war in Ukraine and the global energy crisis are significantly hampering the prospects of a post-pandemic recovery for emerging and developing economies in the region. The report also highlights the potential impact of an extended cutoff of energy supplies to the European Union, which could trigger a recession, particularly for those nations more dependent on Russian natural gas. The global energy crisis also raises concerns over inflation levels and emphasizes the need for countries to prepare for potential shortages.

Source: BNN