The Asian Development Bank (ADB) has revised its economic growth forecast for the Caucasus and Central Asia upwards, projecting a rise from 4.3% to 4.5% in 2024 and from 5% to 5.1% in 2025. This optimistic outlook, detailed in the July edition of the bank's Asian Development Outlook (ADO), reflects a stronger than anticipated growth in Azerbaijan and Kyrgyzstan, according to Report.
Azerbaijan's economy experienced a robust 4.3% growth in the first four months of 2024, primarily driven by its transportation and construction sectors, bolstered by government spending, according to the outlook.
Meanwhile, Kyrgyzstan's economy surged by an impressive 8.8% in the first quarter of 2024. This remarkable growth was fueled by strong performance in the services and construction sectors, backed by both domestic and foreign investments.
The economic vitality wasn't limited to these two countries. Armenia recorded a 9.2% growth in the first quarter of 2024, largely attributed to expansion in the manufacturing sector. Georgia's economy expanded by 9% over four months, with strong lending supporting both domestic consumption and investments.
Tajikistan continued its strong growth trajectory with an 8.2% increase in the first quarter of 2024, driven by a sharp rise in exports, including gold sales.
In Turkmenistan, growth is being fueled by state investments and net gas exports.
Uzbekistan saw a 6.2% growth in the first quarter of 2024, propelled by an increase in fixed capital investments.