NewsTajikistan’s economy heavily relies on Russian remittances amid rising tensions

Tajikistan’s economy heavily relies on Russian remittances amid rising tensions

Mass labour migrations play a particularly significant economic, social, and political role in Tajikistan. One of the main destinations is Russia. Last year, 80 percent of remittances came from this country, and their trips have become regular, writes the Centre for Eastern Studies.

Labour migration plays a significant economic, social, and political role in Tajikistan.
Labour migration plays a significant economic, social, and political role in Tajikistan.
Images source: © Getty Imges | 2O|2 mimmopellicola
Przemysław Ciszak

6 June 2024 15:44

The terrorist attack in Russia at Crocus City Hall caused tensions between the Kremlin and the Republic of Tajikistan. Some members of the Islamic State of Khorasan were Tajik. As Marcin Popławski noted in the Centre for Eastern Studies' analysis, this has created uncertainty about the future of Tajik labour migrations.

As the Centre for Eastern Studies emphasizes, Russia remains one of the main destinations. Last year, 80 percent of remittances came from this country, and their trips have become regular.

Between 800,000 and 1.2 million residents of the 10-million-strong Tajikistan travel for work to large Russian cities mainly seasonally (three-quarters of the trips). The close socio-cultural ties with the Russian Federation are evidenced by the phenomenon of dual citizenship. From July 2019 to June 2023, 452,000 Tajiks were granted Russian passports, writes the analyst from the Centre for Eastern Studies.

According to the data, from 2000 to 2022, migrant remittances averaged over 31 percent of the country's GDP. In 2022, they amounted to £4.4 billion (a jump from £2.4 billion in 2021), and in 2023, they reached a record £4.8 billion—nearly half of Tajikistan's GDP for the entire year.

"Thus, Tajikistan has become the country where the proportion of remittances to GDP is the highest globally. According to the World Bank, in 2023, over 40 percent of households in Tajikistan were supported by migration income," points out the analyst from the Centre for Eastern Studies.

Key role for the economy

Labour migrations are also crucial for the country's GDP growth and the Tajik economy's overall state. As the expert notes, domestic consumption expenditures, fuelled by the record influx of foreign transfers, were one of the main drivers in 2022-2023.

Foreign earnings also alleviate the country's low living standard and contribute to reducing extreme poverty.

As the Centre for Eastern Studies notes, despite the growing role of politico-economic cooperation in the Central Asian region, Russia and China remain Tajikistan's main international reference points.

Related content
© Daily Wrap
·

Downloading, reproduction, storage, or any other use of content available on this website—regardless of its nature and form of expression (in particular, but not limited to verbal, verbal-musical, musical, audiovisual, audio, textual, graphic, and the data and information contained therein, databases and the data contained therein) and its form (e.g., literary, journalistic, scientific, cartographic, computer programs, visual arts, photographic)—requires prior and explicit consent from Wirtualna Polska Media Spółka Akcyjna, headquartered in Warsaw, the owner of this website, regardless of the method of exploration and the technique used (manual or automated, including the use of machine learning or artificial intelligence programs). The above restriction does not apply solely to facilitate their search by internet search engines and uses within contractual relations or permitted use as specified by applicable law.Detailed information regarding this notice can be found  here.