The Tajikistan government’s heavy state involvement in the economy poses risks to future stability, despite recent economic growth. The World Bank’s report highlights robust 2023 performance with an 8.3% growth rate, driven by gold exports, private consumption, and government infrastructure investments. However, concerns about rising budget deficits and costly state projects, like the Rogun hydroelectric power station, are emerging.
The report criticizes the inefficiency of state-run enterprises, noting their financial losses and the distortion of market dynamics. The government’s extensive control also impacts digital infrastructure and private sector development, as outdated practices hinder the adoption of advanced digital technologies and innovations.
