Information on the current economic development of the Republic of Tajikistan in January-August 2018
Continues development of the country’s economy and stable macroeconomic condition can be observed from the period of January-August 2018, that’s mostly because of positive trends and sustainable development of all sectors of the national economy.
According to the results of January-August this year, the GDP of the republic increased by 7.1% in comparison with the same period of 2017, which is higher by 0.1 pp. from forecast of the entire 2018. In value terms, the volume of GDP was 40366.0 million somoni.
A positive contribution to economic growth was made by all sectors that form GDP. However, the main engines of economic growth are still the area of investment in fixed assets and industry of the republic. These two industries accounted for about 70% of the country's total economic growth.
Industrial production for this period grew by 12.9%, investments in fixed assets - by 26.1% gross agricultural production - by 6.1%.
The growth of industrial production is due to the growth of production of the mining industry - by 16.3%, manufacturing industry by 14.8% and production and distribution of electricity, gas and water - by 8.2%.
An increase in investment in fixed assets contributed to the increase in public investment by 26.7%, foreign investments - by 34.9% and private investments - by 7.8%.
The growth of gross agricultural production was achieved due to increase in crop production, in comparison with the same period of last year by 7.0% and livestock products - by 4.0%.
It should be noted that in January-August 2018 the volume of production of major agricultural products in real terms significantly exceeded the corresponding figures of the previous year, with the exception of grain, cotton and melons, the volume of which decreased against January-August 2017 by 11.7 %, 67.7% and 0.1% respectively.
The demand for food and non-food products continues to grow in the consumer market. The volume of wholesale and retail trade turnover for the eight months of 2018 increased against the same period of last year by 14.9%, including wholesale trade - 1.5 times, retail trade - by 8.2%.
The volume of paid services in all channels increased by 2.3%, but the volume of provided services to the population decreased against the level of the previous year by 1.4%, which is the outcome of population’s income growth slowdown, including wages. In January-July 2018, nominal wages increased by 4.7% against 24.1% in January-July of 2017, and its real size (adjusted for inflation) increased by 1.5% against 15.3% in the same period of the last year.
In August, consumer prices increased by 0.8% as compare to July, which is driven by rising prices of food products by 1.1% and the growth of tariffs for services - by 1.2%. As for non-food products, the prices for them have not changed for the month.
Overall accumulative inflation in the consumer market for eight months amounted to 2.8% against 6.0% in the same period of last year. It should be noted that the target rate of inflation for the whole year in 2018 should not exceed 7%.
An increase in foreign trade activity can be observed, as consequences of the favorable external factors. Foreign trade turnover in general in January-August 2018 increased by 19.4%.
The volume of exports increased by 16.9% mainly due to the growth of exports of mineral products by 14.9%, of textiles - by 1.9 times (including cotton fiber 3.1 times), non-precious metals - by 8.6%.
Imports increased by 20.3% due to the growth of imports of investment goods (machinery and equipment) by 1.5 times, vehicles by 1.8 times, non-precious metals by 1.7 times, mineral products by 26.5% , finished food products - by 10.7%.