The economy of Tajikistan in the first half of this year, after a recession in 2020, grew by 8.7%, according to the World Bank report "Economy of Tajikistan – Summer 2021".
The authors note that successful economic growth was supported mainly by "the continued increase in precious metals exports, as well as growth in private investment and consumption".
«In addition, the authors of the report emphasize, the gradual opening of air links with Russia stimulated the inflow of migrant remittances and contributed to the recovery of household consumption».
According to the WB analysts study "Listening to Tajikistan", after the outbreak of COVID-19, the socio-economic well-being of the population deteriorated sharply, but concern about the economic consequences of the crisis in 2021 decreased.
Also, the growth of the country's economy is explained by the expiration of tax breaks related to coronavirus and stable economic activity in the first half of 2021.
«Almost all sectors recorded an increase in budgetary funding, mainly due to social spending and infrastructure projects in the field of energy and transport», – stated in the publication.
Inflation, according to the calculations of WB analysts, at the end of the summer has decreased compared to the peak in March 2021, but it is expected that the growth of global demand for fuel, food and difficulties in the supply chain will continue to put pressure on import prices.
Also, the authors of the report note a recovery in the inflow of foreign investment in the first half of this year after a 47% fall in 2020 (to $ 192.7 million).
The volume of foreign investments in the first half of 2021 increased compared to the same period of 2020 by 43.7% and amounted to $ 118 million.
«Three quarters of all foreign investment in Tajikistan comes from China. Investment from Russia fell to about 7% of the total and was the second largest source of foreign direct investment», – noted in the report.
