BAKU, Azerbaijan, April 5. Asian Development Bank (ADB) expects the GDP growth in the Caucasus and Central Asia to stand at 4.4 percent in 2023, Trend reports via the latest Asian Development Outlook.
According to the report, the war in Ukraine has spurred demand for local goods and services through inflows of Russians and their money into several economies in the Caucasus and Central Asia over the last year.
At the same time, the recovery in tourism in the region was particularly strong in 2022.
"In the Caucasus and Central Asia, tourists from Russia supported the recovery, with economies in the subregion also benefiting from the spending of Russian migrants", moreover, "money transfers from Russia surged in the Caucasus and Central Asia," the report said.
The economic growth of the region is forecast to drop after 5.1-percent growth in 2022, the ADB noted.
"Growth is expected to decline sharply in the three economies that benefited the most from inflows of Russians and their capital. Growth is forecast to decline to 6.5 percent in Armenia this year from 12.6 percent last year, to 4.5 percent in Georgia from 10.2 percent, and to 4.5 percent in the Kyrgyz Republic from 7 percent. In Kazakhstan - the subregion’s largest economy - growth is expected to pick up to 3.7 percent from 3.2 percent last year as some issues that disrupted oil exports through pipelines crossing Russia last year are resolved," the report said.
However, in 2024, the region should expect a slight recovery to 4.6 percent, the bank added.
"Growth in the Caucasus and Central Asia, the Pacific, and Southeast Asia will be lifted by their reopening and recovery in tourism-related sectors," the ADB said.