Central Asia is likely to grow by 5% this year and 2024, even as the Russian economy shrinks by 1.5% in 2023, according to a report from the European Bank for Reconstruction and Development, Bloomberg reports.
Companies fleeing Russia are settling in Central Asia as sanctions disrupt trade flows and exports. Around 15,500 businesses in Kazakhstan now have Russian capital, twice as many as a year ago, according to EBRD Chief Economist Beata Javorchik, and Kyrgyzstan is seeing similar growth.
“These countries are benefiting from capital inflows as Russians move their savings abroad and Russian companies are established there. People who cross the border are educated, wealthy people, and the countries of Central Asia make it easier for them to work there,” Yavorchik said.
According to EBRD forecasts, this year Kazakhstan's economy will grow by 3.9%, and in Kyrgyzstan - by 7%.
The EBRD forecasts economic growth in the regions where the bank operates will be 2.2% in 2023 and 3.4% in 2024, with Central Asia as the fastest growing region (5.2%).
CentralasianLIGHT.org
May 17, 2023