AKIPRESS.COM - Expressed as ratios vis-a-vis GDP, remittance inflows in 2012 are estimated at 44% in Tajikistan and 31% in the Kyrgyz Republic,ranking these two countries first and second in the world by this indicator, according to the the paper titled “Central Asia Trade and Human Development” released by UNDP on April 8.

Following declines in 2009due to the global financial crisis, this ratio for Tajikistan rose to 47% in 2011, before dropping back slightly in 2012. (Reported remittances inflows into Tajikistan continued to grow in absolute terms, rising to $3.4 billion in 2012.) By contrast, monotonic growth in this ratio was noted in 2010-2012 for the Kyrgyz Republic.

Remittance inflows provide critical external balance support for Central Asia’s low-income countries. According to official data, remittance inflows in Tajikistan during 2011-2012 were more than twice as large as merchandise exports, and fully financed Tajikistan’s merchandise trade deficit. For the KyrgyzRepublic, remittances have financed between half and three quarters of the merchandise trade deficit during most of the past decade. The available evidence indicates that remittance inflows in Central Asia’s low-income countries play a significant role in reducing poverty.