In the first nine months of 2014, the GDP of Tajikistan fell by 0.8 percent from 2013, the World Bank said Monday.
The World Bank cited slowed activity across the economy.
The slowdowns are largely an effect of slowdowns in the Russian economy causing a chain reaction in limiting remittances, thus decreasing demand for domestic housing construction. Increases in food prices and tariffs has caused inflation to reach an adjusted 4.7 percent as opposed to 1.6 percent in the previous year.
The GDP growth seen since 2009 will begin to ease as continued slowdowns in Russia will affect Tajikistan. The GDP is projected to remain at 6.5 percent growth by year's end.
Domestic and external risks are becoming apparent as vulnerabilities in state-owned enterprises and slower than expected recoveries in cotton and aluminum exports are coming to light. The country will need to construct financial buffers, and reformation is needed, to stimulate growth and job creation.