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Tajikistan to witness rise in investment inflows in 2024, says WB

Tajikistan Materials 12 April 2024 19:00 (UTC +04:00)
Umar Abakirov
Umar Abakirov
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DUSHANBE, Tajikistan, April 12. The World Bank (WB) predicts that Tajikistan will record a net foreign direct investment (FDI) inflow equivalent to 1.5 percent of its GDP in 2024, Trend reports.

According to the WB, this percentage is expected to remain constant at 1.5 percent in both 2025 and 2026. In contrast, FDI inflows stood at 0.8 percent of GDP last year.

In broader economic terms, the WB notes that Tajikistan's GDP grew by 8.3 percent in 2023, primarily propelled by private consumption and exports of precious metals. While the outlook for 2024 remains positive, supported by sustained private consumption and increased public investment, there are concerns about a potential decline in exports of precious metals.

Tajikistan's economy is forecast to expand by 6.5 percent in 2024, driven by ongoing private consumption, especially due to Russia's strong demand for labor migrants. Furthermore, domestic real wages are expected to rise alongside increased public spending on infrastructure.

However, the WB also identifies several risks to Tajikistan's economic outlook, including geopolitical uncertainty, slower-than-expected global economic growth, tighter financial conditions, and sluggish progress in structural reforms. Additionally, Tajikistan's vulnerability to climate change and natural disasters exacerbates its economic challenges.

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