Acknowledgement

Key words: GDP growth, external debt, debt service, foreign direct investment, trade openness, labor participation rate.

Introduction

GDP growth theories as well as models illustrate the various ways in which current economic activity may impact future economic developments and able to uncover sources of future economic growth. Researchers and economists reiterate the importance of GDP growth for the human race's evolution and well-being. Economic growth, especially GDP growth theories have changed over time, depending on the historical period and the economy's characteristics. Improvements in mathematical and statistical tools have also aided in the formulation of new ideas. The research have been done in order to analyze the GDP growth and its determinants of one of the Central Asian countries named Tajikistan. The country had consistent economic development as well as significant poverty reduction levels during the recent decades. Mainly the reason for that were a favorable external condition. Tajikistan`s economy on the other hand, is heavily reliant on remittances, tiny export bases as well as agriculture.

Tajikistan has made significant progress in decreasing poverty and increasing its economy during the last decade. Between 2000 and 2019, the poverty rate declined from 83 percent to 26.3 percent of the population, while the economy increased at an annual pace of 7%. However, employment opportunities were not kept similar to population growth, making the economy of Tajikistan more vulnerable to different external shocks and limiting the role of the private sector in the economy. In rural areas, non-monetary poverty indicators remained high, with less than 40 percent of the population in rural areas who has access to safe drinking water. Many researchers as well as economic theories state than all of those conditions is the results of low GDP growth.
Tajikistan's GDP rose at an annual pace of 8.7% in the first half of 2021, following a decline in 2020. This economic recovery was aided by a sustained strong growth in precious metals exports, as well as an increase in private investment and consumption. The restart of aviation communication with Russia allowed migrants to fly overseas again, allowing remittances to flow again. In the first eight months of 2021, foreign investments increased by around 35% year on year, owing mostly to increasing Chinese interest in the mining industry.