Azernews.Az

By Aynur Karimova

The World Bank predicts Tajikistan’s economic growth to slow to an estimated 4.2 percent in 2015.

The bank said in its new bi-annual Tajikistan Economic Update that it is due to the decline in remittances from Russia, weak global demand and low prices for the country’s key export commodities such as aluminum and cotton.

This Central Asian country's economic growth was 6.7 percent in 2014.

The fall in remittances and slowdown of economic growth has had a strong impact on Tajikistan's income, which is expected to reach 10 percent in 2015.

"The country's medium-term growth prospects will depend on how well Tajikistan will adjust to the new external environment and address major macroeconomic risks related to its external-account volatility, declining foreign exchange reserves, contingent liabilities generated by state-owned enterprises and ongoing vulnerabilities in the banking sector," the report said.

The World Bank’s active portfolio in Tajikistan includes 25 projects (including regional projects) with a net commitment of $383 million.

The bank's aim is to support economic growth through private sector development, while investing in better public services for people, such as education, health, municipal services and social protection. Since 1996, the World Bank has provided $978 million in grants and highly concessional credits from the International Development Association and trust fund resources to Tajikistan.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

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