Central Asia’s economic growth made up more than 4% in 2017
According to the results of the study by the European Bank for Reconstruction and Development, Central Asia’s economic growth made up more than 4% in 2017. Over the past nine months the states of the region had positive improvements after a slowdown in 2016. In the exporting countries, the growth of commodities is explained by the increase in production in the extractive industry and the world oil prices rising above US$60 per barrel. There are high rates of industrial growth in Tajikistan and Kyrgyzstan, mainly due to the coal and gold extraction, as well as the production of textile products. In addition, according to experts, in most Central Asian countries, the national currencies have been stabilized. In 2018, the EBRD predicts further growth in the region’s economies by 4.4% on average.
AIZHAN MUKHYSHBAYEVA, LEADING EXPERT, INSTITUTE OF WORLD ECONOMICS AND POLITICS:
- Positive changes in the Russian economy influenced Tajikistan and Kyrgyzstan. This is because many citizens of these republics work in Russia. The growth of the Russian economy has contributed to an increase in remittances between the countries. Moreover, it is important to highlight the policy of liberalization of foreign trade in Uzbekistan after the arrival of the new president. This affected the relations with other countries and gave a new impetus to development of the economy.
Regarding Central Asia, in 2017, it had an economic growth of more than 4% which means that it is higher than in the previous year's crisis. This was due to the increase in oil price, which is the export of raw materials. It has had a positive impact on the Russian economy like in Tajikistan and Kyrgyzstan. The reason is that citizens of Kyrgyzstan and Tajikistan are working in Russia. The growth of Russia's economy has affected the growth of migrant workers' financial transfers. Positive changes are also observed in investments in these countries. Moreover, after the transition to the post of prime minister in Uzbekistan the general foreign liberalization policy has been closely linked with other countries that have helped to gain a new impulse in the overall economy.