BAKU, Azerbaijan, April 10. Central Asia's GDP growth in 2023 is expected at about 4 percent, Trend reports via the WB's Europe and Central Asia Economic Update.
At the same time, as the WB noted, this is the fastest growth among the ECA subregions.
"In 2023, increased oil production (Kazakhstan) and energy infrastructure investment (Kazakhstan and Uzbekistan) are likely to be largely offset by a decline in metal production (Kyrgyz Republic) and lower household spending in response to high inflation (Kazakhstan)," the report noted.
According to WB's estimations, the region's GDP growth in 2022 stood at 4.1 percent.
"Trade and investment diversion following Russia’s invasion of Ukraine helped support growth in 2022, offsetting a decline in consumption as high inflation curbed spending," the report said.
Meanwhile, the bank expects the region's GDP growth to grow moderately to an average of 4.3 percent in 2024 and 2025, due to by progress in advancing structural reforms in Uzbekistan, Kazakhstan, and Tajikistan, and new investments, which will increase hydrocarbon production capacity
"The subregion faces downside risks because of high inflation, disruptions to key oil transportation infrastructure, and a deeper contraction in output in Russia. Greater-than-expected global demand and higher oil prices pose upside risks," the report concluded.
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