Wages GDP rising in Tajikistan but living standards falling

Asia-Plus

Tajikistan’s authorities report yearly on economic growth, an increase in gross domestic product (GDP) and higher incomes for the population.  However, people say they do not feel the improvements in living conditions, and the nominal increase in wages is being eroded by inflation.

            Thus, an average monthly salary of school teachers in Tajikistan is 1,500 somonis (equivalent to about US$160.00).  This amount is enough only to buy groceries for a month.

            Teachers’ salaries are gradually increasing by 10, 15 or 20 percent, but this increase is almost imperceptible because of inflation.

            An article published by CABAR.asia on June 14 this year says Tajikistan’s gross domestic product (GDP) has grown more than 13-fold over the past 22 years, from U$0.86 million in 2000 to US$11.3 billion in 2022, and it is projected to  reach 127.3 billion somonis (over 12.4 billion USD) in 2023.

            Thus, the growth is more than 10.6%.  The increase in wages is even more spectacular.  While in 2000, according to official data, the average wage was about 16 somonis (about 7.00 USD), in February 2023 it was more than 1,874 somonis (about 172.00 USD).

            In other words, during this period wages increased more than 100 times in the somoni and 24 times in the US dollar terms, but at the same time, the purchasing power of both the national currency and the US dollar decreased significantly.  Moreover, the exchange rate of the somoni has fallen steadily against the dollar over the past few years.  While in 2001, one US dollar was equal to 2.20 somonis, in June 2023 it was 10.92 somonis.

            Residents of Tajikistan earn the lowest wages in Central Asia.  The average monthly wage in Kazakhstan in 2023 was 340,000 tenge (about $760).  The average salary in Turkmenistan, according to official data, is $715; in Kyrgyzstan, it is about 30,000 soms ($341); and in Uzbekistan, 3.72 million soms ($335) by the end of 2022.

            According to experts, annual GDP growth does not have a tangible impact on the level of income of Tajik citizens.  They are growing due to other factors, above all remittances of labor migrants.

            In accordance with the Law of the Republic of Tajikistan “On Minimum Subsistence Level“, every five years the government adopts “Guidelines for determining the consumer basket for the main socio-demographic groups of the population in the Republic of Tajikistan.”

            The recommendations contain a list of 11 food items, including bakery products, meat, vegetables and fruits and others.  The group of non-food items includes clothing and footwear, outerwear, school supplies, etc.

            The recommendations also include utilities, including water, sewerage, electricity, etc.

            However, many citizens, especially public employees, say that wages are insufficient to meet these requirements.

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