IMF recommends Tajikistan focus on keeping inflation down
DUSHANBE. Sept 21 (Interfax) - The International Monetary Fund (IMF) has confirmed its 2011 GDP growth forecast for Tajikistan at 6% and inflation at 13.9%, the head of the IMF Mission in Tajikistan Todd Schneider said at a press conference in Dushanbe Wednesday.
The IMF predicts that real GDP growth will be at least 6% in 2011, especially if there continues to be high prices for key export goods and economic growth for Tajikistan's regional partners, he said.
Inflation, caused by a rise in food products and light petroleum products, remains the main problem for macroeconomic stability in Tajikistan, Schneider said.
A matter for serious concern is the rise in inflation, which peaked in May at 14.8% (compared to May 2010) before dropping at a moderate rate, he said.
Consumer prices climbed 8.5% in January-August 2011 (4.8% in the same period of 2010. The rise was mainly due to a hike in food and fuel prices, which Tajikistan largely imports.
The IMF is also concerned with the large volume of problem loans in the portfolio of Tajikistan's commercial banks.
Financial sector indicators have stabilized over the past few months, but the IMF Mission calls on the National Bank of Tajikistan to implement a plan to ensure stability in the financial sector, which is aimed at resolving the problem of non-performing loans and improving accounting and monitoring standards. These measures should help strengthen confidence in banks, create opportunities for private sector lending and through this encourage economic growth and employment, Schneider said.
