The poorest country in the post-Soviet space lives mainly on agriculture, minerals and largely on remittances from citizens working abroad. Mainly in Russia. Nevertheless, the economy of Tajikistan after the end of the civil war in 1997 has been steadily growing at a fairly high rate.
General information
The country belongs to the agro-industrial type, the bulk of GDP is produced in the industrial sector and agriculture, in contrast to developed countries - with a developed service sector. The economy of the Republic of Tajikistan in recent decades has been characterized by an increase in employment in the industrial sector and a decrease in other sectors.
The countries' GDP is only 6.92 billion US dollars. The indicator is steadily growing at an average of 5-7% per year. In earlier post-Soviet years, the growth rate reached 15%.
The civil war de alt a severe blow to the economy, destroying an already weak economic infrastructure. The main growth factors are the export of aluminum and cotton, which makes the country's economy highly dependent on the global situation in these markets.
The main efforts of the Ministry of Economy of Tajikistan are aimed at achieving three strategic goals: ensuring food security and energy independence, as well as removing transport isolation.
Industry
Key industries are mining, chemical, cotton, metallurgy.
This sector of the Tajik economy is represented mainly by small outdated enterprises. For the most part, they belong to the light and food industries. The only major aluminum smelter is currently operating below its design capacity.
Export of aluminum is the second largest foreign trade item after cotton, which provides up to 75% of foreign exchange earnings in the country's budget.
The largest industrial centers of Tajikistan are Dushanbe, Tursunzade and Khujand. The country has many enterprises associated with the processing of agricultural raw materials, including silk, carpet weaving, clothing and knitting factories. The food industry has declined over the years of independence, while the population has grown significantly. Therefore, up to 70% of food has to be imported.
The country produces brown coal, oil and natural gas, tin, molybdenum and antimony. Certain types of machine-building are produced (including the assembly of Russian trolleybuses andTurkish buses) and chemical products.
Agriculture
In Soviet times, up to 1/3 of the territory was occupied by agricultural land, of which only 18% were arable land. The economy of Tajikistan at that time was predominantly agrarian, with the main cash crop being cotton, which occupied significant areas of arable land, sometimes to the detriment of food crops.
This situation has continued to this day. Cotton is the dominant crop, 90% of which is exported. The main volumes of production fall on state and collective farms. Child labor is still used in the harvest. According to some reports, up to 40% of cotton is harvested by schoolchildren.
The production of vegetables and fruits is carried out by the population in household plots. Animal husbandry (cattle, sheep and poultry) is also dominated by private producers.
Other industries
The country has significant resources for the development of hydropower, as it has a vast territory occupied by mountains with fast rivers. HPP cascades are located on the largest rivers of the country - Vakhsh, Pyanj and Syrdarya. However, only 50% is provided with own electricity. The situation may improve with the planned launch of the Rogun HPP in late 2018.
The development of the economy of Tajikistan largely depends on the remittances of migrant workers. According to some estimates, up to 1million Tajiks work in Russia - 90% of all citizens working abroad.
Their contribution to the country's GDP ranges from 35% to 40% in different years. According to the European Bank for Reconstruction and Development, about $1 billion is transferred to the country every year, which is not invested, but mainly goes to consumption. According to the World Bank, the country ranks first in the world in terms of the share of remittances in GDP.
