...

GDP growth in South Caucasus to rebound in 2024, WB says

South Caucasus Materials 11 January 2023 16:03 (UTC +04:00)
GDP growth in South Caucasus to rebound in 2024, WB says
Maryana Ahmadova
Maryana Ahmadova
Read more

BAKU, Azerbaijan, January 11. The GDP growth in the South Caucasus in 2023 is projected to halve to 3.3 percent, Trend reports, citing the latest economic outlook from the World Bank (WB).

"A surge in capital and migrants from Russia, as well as a possible rerouting of some trade and financial flows, helped fuel domestic demand and services exports in several economies, particularly in the South Caucasus," the report said.

At the same time, the current forecast remained unchanged, compared to June 2022 outlook, the WB noted.

"The forecast deceleration reflects weakening momentum after the strong rebound in 2021-22, the slowdown in the euro area, ongoing border tensions between Armenia and Azerbaijan, and the ongoing contraction of output in Russia, one of the South Caucasus’s closest economic partners," the report said.

According to the WB, the GDP growth in the region is expected to accelerate moderately in 2024 to 3.5 percent (up by 0.2 percentage points, compared to June 2022).

Meanwhile, as the report noted, the economic growth of the South Caucasus in 2022 is estimated at 6.5 percent.

For the whole region (Europe and Central Asia), where South Caucasus is included, the GDP is expected at only 0.1 percent. According to the report, the current forecast has been revised downward by 1.4 percentage points, since June 2022 outlook.

"Recession in Russia and subdued growth in China are anticipated to weigh on activity, especially in the South Caucasus and Central Asia," the WB noted.

Tags:
Latest

Latest