DUSHANBE, 03.12.2019 (NIAT Khovar) – The real GDP growth rate of Tajikistan during the first three quarters of 2019 continued to remain high at 7.2%, which is approximately equivalent to economic growth indicators in 2017-2018 at the level of 7.1-7.3%, according to a report by the World Bank Group.

The report notes that industry and services, as well as increased demand in the domestic market were the main factors in the country’s economic growth.

The current account deficit fell to 7% of GDP in the first half of 2019 compared to 11% of GDP for the same period last year due to an increase in income transfers and a decrease in the trade deficit. The decrease in import costs for machinery and equipment were the main reasons for the reduction of the trade deficit. However, lowering international prices for aluminum and cotton fiber negatively affected Tajikistan’s export revenue and, in tandem with increased imports, led to the deterioration of the trade balance to 29.1% of GDP over the nine months of 2019, states the report.

The leap in the import growth projected in the last quarter of this year is likely to maintain a current account deficit of 5% of GDP by the end of 2019, which is almost unchanged from 2018.

Despite the difficulties associated with revenue collection, the Tajik government still managed to limit the budget deficit to about 2.8% of GDP in January-September 2019. This result is due to budget consolidation, which was launched in 2018, when the budget deficit was reduced to 2.7% of GDP compared to 6.7% of GDP in 2017.

This edition of the Report on Tajikistan’s Economy is part of a series of publications issued every six months to monitor the country’s socio-economic development.