Azernews.Az

By Trend

Tajikistan’s reliance on a narrow export base and remittances, coupled with a widening trade deficit, has made the economy vulnerable to external economic shocks. Diversifying production and exports could improve incomes and economic resilience, and sustain economic growth in the country, says a new Asian Development Bank (ADB) report, Trend cites to akipress.com

In its Asian Development Outlook (ADO 2019), ADB forecasts Tajikistan’s gross domestic product growth to moderate to 7.0% in 2019 and 6.5% in 2020, from the 7.3% economic growth rate recorded in 2018. ADO is ADB’s flagship annual economic publication.

“Tajikistan will reap significant economic dividends by strengthening its information technology infrastructure—making internet access cheaper and better and encouraging private investment in data and voice services— and by strengthening training of the youth,” said ADB Country Director for Tajikistan Mr. Pradeep Srivastava.

Tajikistan should explore opportunities to export products for which it enjoys a comparative advantage, such as high-value agricultural products, according to the report. Giving farmers technical support in marketing and establishing marketing associations to attain economies of scale and reduce transaction costs could help boost production, sales, and ultimately exports, which would raise rural incomes.