According to data of the Agency for Statistics under the President of Tajikistan, a two-way trade between Tajikistan and Switzerland in January-September this year has valued at 693 million U.S. dollars, which is 5.2 times more than in the same period last year.
This consisted of Tajikistan’s exports to Switzerland estimated at some 689 million U.S. dollars and Tajikistan’s imports from Switzerland worth little more than 4.4 million U.S. dollars.
Tajikistan’s exports to Switzerland have accounted for 58 percent of the overall volume of Tajikistan’s exports reported in January-September 2020.
Recall, exports of goods in January-September have amounted to about 1.2 billion U.S. dollars.
Tajikistan is experiencing its slowest economic growth in two decades. COVID-19 and Human Capital by the World Bank, in particular, notes that although net exports grew, lower remittances –down almost 15 percent from a year earlier in the first half of 2020 -led to the deterioration of the overall external position in 2020 H1. The trade balance benefited from surging gold price and import contraction, primarily showing up in consumer goods. Consumer price inflation eased to 8.4 percent (y/y) from 8.7 percent in June 2019.
The fiscal deficit reportedly amounted to 2.3 percent of GDP in the first half of 2020, according to preliminary estimates. Tax collections fell below the targeted plans, resulting in cuts and scrutiny to non-priority current and capital expenditures. To ensure financing of the protected budget outlays, the authorities sold gold reserves.
The banking system has capital cushion at the rate of 19.7 percent, which is above the 12 percent required minimum threshold. However, the ongoing pandemic has magnified the risk of possible borrower de-faults, and the current level of capitalization might not be adequate to absorb potential losses from non-performing loans, which reached 31 percent by mid-2020. The fiscal deficit amounted to 2.3 percent of GDP in the first half of 2020, according to preliminary estimates. Tax collections fell below the targeted plans, resulting in cuts and scrutiny to non-priority current and capital expenditures. To ensure financing of the protected budget outlays, the authorities sold gold reserves.
