DUSHANBE, March 26, 2015, Asia-Plus -- Landlocked and possessing limited arable land and a narrow industrial base, Tajikistan is highly vulnerable to external shocks, the Asian Development Bank (ADB) says in its annual economic report.

In 2014, growth reportedly slowed to 6.7% from 7.4% a year earlier, reflecting sharp declines in remittances and aluminum and cotton exports,

ADB''s flagship economic publication, Asian Development Outlook 2015 (ADO) , released on March 24, forecasts annual gross domestic product growth for Tajikistan to slow to 4.0% in 2015, and 4.8% in 2016, reflecting a recession in the Russian Federation and continued weakness in forecast commodity prices.

“The current economic slowdown once again highlights the urgency for Tajikistan to unlock the potential of its valuable resources and boost exports, and thereby mitigate its vulnerability to external shocks,” said C.C. Yu, ADB’s Country Director for Tajikistan.  “Realizing this potential requires continued structural reforms to attract greater private investment and create more higher-paying jobs at home.”

Inflation is forecast to accelerate to 10.0% in 2015 with currency depreciation and ease back to 6.5-7.0% in 2016. In 2014, inflation reached 6.1% from 5.1% a year earlier.

ADO provides a comprehensive analysis of macroeconomic issues in developing Asia, including growth projections by country and region.  Its special theme chapter, Financing Asia’s Future Growth , examines the role of the financial system in supporting inclusive and stable growth as the region transitions toward a new growth paradigm built on efficient investment and increased productivity.

Tajikistan joined ADB in 1998 and, to date, ADB has approved total assistance of around $1.3 billion in concessional loans, grants, and technical assistance to the country.  The ADB-Tajikistan partnership has promoted social development, upgraded and built new infrastructure, expanded agricultural production, and encouraged regional cooperation and trade under the CAREC Program.

ADB, based in Manila, dedicates itself to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the Asia-Pacific region.