- GDP (PPP):
- $41.8 billion
- 7.1% 5-year compound annual growth
- $4,329 per capita
- Inflation (CPI):
- Public Debt:
Tajikistan’s economic freedom score is 50.6, making its economy the 146th freest in the 2023 Index. Its score is 0.9 point higher than last year. Tajikistan is ranked 31st out of 39 countries in the Asia–Pacific region, and its overall score is lower than the world and regional averages.
Tajikistan’s economic development lags far behind that of many other developing countries. Excessive dependence on commodity export earnings leaves the economy vulnerable to market volatility. The government does a poor job of advancing economic freedom. Corruption persists, and the rule of law is too weak to sustain meaningful economic progress.
Mountainous and landlocked, Tajikistan is Centra Asia’s smallest nation in terms of area. Autocratic President Emomali Rahmon has been in power since 1994, and abuses of human rights are widespread. The victory of Rahmon’s party in the 2020 parliamentary elections was criticized by international monitors. Tajikistan relies heavily on revenues from exports of aluminum, gold, and cotton. With less than 7 percent of its land arable and given high state-mandated cotton production, the country must import most of its food. Although Tajikistan’s economy is growing, it remains one of Asia’s poorest and is still partly dependent on remittances and narco-trafficking.
Rule of Law
The overall rule of law is weak in Tajikistan. The country’s property rights score is below the world average; its judicial effectiveness score is below the world average; and its government integrity score is below the world average.
The top individual and corporate tax rates are, respectively, 12 percent and 18 percent. The tax burden equals 18.2 percent of GDP. Three-year government spending and budget balance averages are, respectively, 28.7 percent and –2.4 percent of GDP. Public debt equals 44.4 percent of GDP.
The business environment has improved but only marginally. Entrepreneurial activity is seriously hampered by state interference that increases regulatory costs and by inconsistent bureaucracy. The labor market remains underdeveloped. The government influences prices through regulation, subsidies, and numerous state-owned enterprises.
The trade-weighted average tariff rate is 6.4 percent, but onerous and pervasive nontariff barriers severely limit trade freedom. All private investment is screened and requires government approval. Financial-sector assets have grown, but the state’s continuing interference seriously handicaps private-sector development.