The European Bank for Reconstruction and Development projects that the economies of the five Central Asian countries – Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan – will grow by at least 5.2 % on average in 2023 and 5.4 % in 2024. This trajectory has been in place for two decades, which is undoubtedly welcome news.
Over the past 20 years, Central Asian countries’ GDP has grown more than sevenfold at an average rate of 6.2%, which is faster than in most developing countries and more than twice as fast as the world as a whole.
The region is also taking full advantage of its transit potential. The total foreign trade turnover of the Central Asian states over the last six years has exceeded $200 billion. Last year, Kazakhstan’s trade turnover broke a historical record, reaching $134.4 billion, exceeding the pre-pandemic level of $97.8 billion in 2019. Mutual trade between Central Asian countries is growing even faster than their total foreign trade.
Despite these positive trends, significant threats and challenges remain.
Uncertainty over global developments in interest rates, inflation, and commodity prices are clouding the long-term outlook for the region. Water and energy supply is an issue that requires constant attention, particularly in view of climate change and its consequences, including droughts and rising temperatures, which can lead to soil degradation and worsening conditions for agriculture and food security.
To ensure that Central Asia makes use of the presented opportunities and successfully navigates the challenges, it is vital to enhance cooperation between all the regional states.
Source : Eureporter
