Tajikistan Economic Update, October 2012

Abstract

Tajikistan has successfully emerged from the global economic crisis. Economic activity was strong, driven by growth in industrial production and services. Inward remittances remain a key factor in stimulating domestic consumption. Although inflation returned to single digits, it continues to be susceptible to higher global prices of key imports. The country remains vulnerable to a range of external shocks, and economic outcomes depend critically on regional trade, transport, and investment policies. Concerns remain with respect to weaknesses in the financial sector. Structural reforms continue, and transparency has increased. The outlook is generally positive, but chronic risks remain.