October 2022. Republic of Tajikistan: Social and Economic Development in the first half of 2022

30 November 2022

In the first half of 2022, the short-term indicator of economic activity in the main sectors of the Republic of Tajikistan amounted to 7.4%. A slight slowdown in the economic growth rate compared to the same period in 2021 (8.7%) was due to a decrease in the growth rates of services and construction. Remittances from abroad and external financing contributed to an increase in gold and foreign exchange reserves by 22.3% to cover 7.4 months of imports of goods and services. The budget deficit narrowed to 1.1% compared to 1.4% a year earlier, mainly due to the execution of budget expenditures below the planned level. GDP growth and favorable foreign exchange rates movements contributed to the decline in public debt from 42.8% of GDP at the end of 2021 to 40.7% of GDP in the first half of 2022. Inflation accelerated to 8.3% in annual terms at the end of June 2022, compared with 8.0% at the end of 2021 against the background of rising food prices. In the face of inflationary pressure, the National Bank of Tajikistan continued to adhere to a relatively tight monetary policy, keeping the refinancing rate at 13.25%. The financial indicators of the banking sector remained sustainable.