May 2023. Republic of Tajikistan: Social and Economic Developments in 2022

19 May 2023

In 2022, Tajikistan's economy continued to show high rates of economic growth, driven mainly by domestic demand. Consumption was supported by high rates of growth of remittances. Investment growth occurred in the electric power generation, transmission and distribution sector, as well as in education. Higher remittances contributed to an improvement of the current account and the balance of payments in general, leading to increase of the country's international reserves and appreciation of the local currency. In turn, the local currency appreciation and a good harvest of agricultural crops contributed to lower inflation, which gave the National Bank of Tajikistan an opportunity to bring down the refinancing rate by the year end. In 2022, the budget deficit declined marginally. Growing budget revenues in the form of grants offset a decrease in tax revenues that occurred due to lower tax rates set in accordance with the new Tax Code. Key indicators of the banking sector reflect improved financial stability.