Azerbaijan, Baku, May 24 / Trend, E. Aliyev /
Short-term prospects remain generally favorable for oil and gas exporters in the Caucasus and Central Asia (Azerbaijan, Kazakhstan, Turkmenistan and Uzbekistan).
This reflects the limited direct relations between the region and Europe, as well as continued high oil prices, a report of the International Monetary Fund (IMF) said today.
According to the report, the region continued to show strong economic growth, but in 2012 it was 5.7 percent, which is slightly less than in previous years.
"This slowdown in growth was the result of depressed external demand, a sharp drop in Kazakh agricultural production and irregularities in gold production in the Kyrgyz Republic," the report said. "The growth in most oil and gas exporting countries in 2013-2014 is projected at 5-8 percent. Active growth in non-oil sectors and an increase in oil production in Kazakhstan will contribute to this."
According to IMF experts, the economic prospects in the Caucasus and Central Asia countries are still clouded by risks from shrinking growth indices associated with a possible growth slowdown in the world economy, regional geopolitical risks, etc.
"If these risks were to materialize, there would be a sharp drop in the growth rate in connection with the decrease of exports, migrants' money transfers and foreign investments," a statement said.
According to the IMF, the main objectives of the region for the medium term are to create jobs and promote strong and sustainable growth with a broad base.
"While some Caucasus and Central Asian countries have made progress in creating favorable conditions for business, further work in this area is required in all of these countries," a statement said. "Throughout the region, countries must actively resume reforms to eliminate old structural shortcomings, improve the quality of governance, take advantage of favorable conditions for investors and promote regional trade and financial integration. The countries must make great efforts to diversify the economy, continue improving its infrastructure, reduce the government's role in the economy and promote transparency and improve governance. Reducing the barriers for regional trade would also improve economic diversification and growth."