Background

Tajikistan is a landlocked country in Central Asia with a population of over 7 million and per capita income of 780 USD  (as of 2010). After its independence Tajikistan suffered from a devastating civil war which lasted from 1992 to 1997. Since the end of the war, newly established political stability and foreign aid have allowed the country’s economy to recover.

The economy of Tajikistan has performed much better in 2010 than anticipated by most International Financial Institutions (IFIs). GDP has grown by 6% in 2010 (National Bank of Tajikistan and International Monetary Fund) and is expected to grow by 5.8% in 2011  (IMF).

According to the National Bank of Tajikistan the inflation rate for the period from January to August, 2011, stood at 7.7%. The inflation rate from August 2010 to August 2011 was 14.1% per annum . IMF is forecasting 13.9% of the full year inflation in 2011 . Despite the robust growth of the Tajik economy on macro level, it should be noted, that most Tajiks still live in poverty. According to the World Bank its GNI per capita was still extremely low at 780 USD in 2010, i.e. more than 12 times lower than in Russia. Social and political stability depends critically on the improvement of living conditions.

More information on the country’s economy is provided here.