Republic of Tajikistan: First Review Under the Policy Coordination Instrument and Request for Modification of a Quantitative Target and a Reform Target-Press Release and Staff Report

Tajikistan has continued to navigate the challenging external environment well. Real GDP rose 8.4 percent during January-September 2024, while inflation remained well-contained at 3.1 percent (y/y) in September. Robust remittances have boosted the external position, with FX reserves at more than 7 months’ import coverage, while prudent fiscal implementation has anchored a continued reduction in public debt. The banking sector remains stable amid steady growth in credit aggregates. Geopolitical fragmentation and regional tensions create uncertainty over the medium-term outlook.