Tajikistan: Promoting Export Diversification and Growth

Abstract

Building on robust economic growth since the end of a civil war in 1997, Tajikistan has transformed itself into a service economy driven by consumer spending fueled by strong remittance inflow. Yet the transfer of resources to high value-added sectors has been restrained, and structural change has generated few new jobs. Without sufficient employment opportunities in the services and industrial sectors, agriculture became the fallback for most of the labor force. To continue its economic growth, Tajikistan requires new drivers from a diversified industry sector and a modernized economy through structural transformation and export diversification.