Baku, Azerbaijan, Sept.25
By Nargiz Sadikhova - Trend:
The Asian Development Bank (ADB) has raised its GDP growth forecast for countries of Central Asia from 4.2 percent previously to 4.4 percent, Trend reports with reference to the bank’s Asian Development Outlook (ADO) 2019 Update report.
According to the report, growth accelerated in the first half of 2019 in Azerbaijan, the Kyrgyz Republic, Tajikistan, and Uzbekistan from the same period in 2018.
“With projected growth higher for Azerbaijan, Kazakhstan, and Uzbekistan, this Update raises the subregional growth forecast for 2019 from 4.2 percent in ADO 2019 to 4.4, partly reflecting expansion in the first half of the year,” the report said.
Furthermore, the forecast for 2020 is raised from 4.2 percent to 4.3 percent, with higher projections for Kazakhstan, Tajikistan, and Uzbekistan.
“Growth in Kazakhstan in the first six months of 2019 decelerated slightly from 4.2 percent in the same period of 2018 to 4.1 percent. Adherence to internationally agreed supply restrictions and maintenance at the Kashagan oil field trimmed oil production, but growth in the rest of the economy was largely sustained,” ADB noted.
According to the report, with Kazakh government spending for social programs greater than earlier expected, the Update raises GDP growth projections from 3.5 percent to 3.7 percent for 2019 and from 3.3 percent to 3.4 percent for 2020.
"With curbs on oil production trimming the forecast trade surplus, the current account balance is now projected to move deeper into deficit in 2019 and widen further in 2020," the report said.
The Asian Development Bank was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world. ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development. ADB is composed of 68 members, 49 of which are from the Asia and Pacific region.
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