Page 934 – The Times Of Central Asia

06 Dec 2023

Kyrgyzstan, Business & Economy, Kyrgyzstan Business & Economy, Kyrgyzstan Home

Kyrgyzstan’s Economy Grew Strongly in 2022 and So Far in 2023, Says IMF

June 27, 2024
By Times of Central Asia

Kyrgyzstan’s Economy Grew Strongly in 2022 and So Far in 2023, Says IMF

The economy of Kyrgyzstan performed strongly in 2022, expanding at 6.3% despite the headwinds from the difficult regional environment. Tax revenue improved sharply, and public debt declined to 49% of GDP. Headline inflation fell from 14.7% in December 2022 to 9.2% in October 2023, Nikoloz Gigineishvili, head of an International Monetary Fund (IMF) mission that held consultations with the Kyrgyz Republic during November in Bishkek said in a statement on December 4^th.

The current account deficit widened significantly to 43.6% of GDP in 2022 as non-oil imports increased by 26% of GDP and gold exports were suspended, while re-exports to Russia were not captured in official statistics, the statement said. Growth is expected to remain at around 4% in the medium term, and inflation to decline to mid-single digits. However, further escalation of the war in Ukraine and secondary sanctions which could further weaken the Russian economy and result in the return to Kyrgyzstan of migrant workers could reduce trade and growth, the IMF statement concludes.

06 Dec 2023

Home, Kazakhstan Supplementary Stories, Kazakhstan International Affairs, Kazakhstan, Kazakhstan Business & Economy

Kazakhstan’s Road Freight Transportation Sees 22% Growth: A Boon for the Economy

June 27, 2024
By Times of Central Asia

In a recent government meeting chaired by Prime Minister Alikhan Smailov, it was reported that Kazakhstan has seen a significant surge in road freight transportation during the first three quarters of this year. The volume of goods transported by road reached 5.5 million tons, marking a 22% increase compared to the same period last year. This growth trend is also reflected in transit transportation, which has risen by a whopping 44%, climbing from 2.5 to 3.6 million tons.

The driving force behind this uptick is the marked increase in cargo transportation to China. Transport volumes have doubled, reaching 1.5 million tons. This surge illustrates the vast potential for further amplifying the volume of transit cargo moving from China to Europe. If the current dynamics persist, transit through Kazakhstan could multiply five-fold by 2029, providing a substantial boost to the country’s economic development.

Prime Minister Smailov underscored the vital role of developed road freight transportation in shaping the economy. It has direct impacts across all sectors, making it a key factor in the nation’s economic landscape. Currently, eight international highway corridors traverse the territory of Kazakhstan, spanning a total length of approximately 13,000 km. These include the Western Europe – Western China route.

This promising growth trajectory in road freight transportation positions Kazakhstan as a strategic player in the international logistics and transportation arena. It also underpins the country’s commitment to bolstering its economic infrastructure and enhancing its trade relationships, particularly with neighboring China. As we move into 2024, Kazakhstan’s transportation sector seems poised for further expansion and success.

06 Dec 2023

Uzbekistan, Uzbekistan Business & Economy, Uzbekistan International Affairs

Europe-Uzbekistan Association for Economic Cooperation Launched in Tashkent

June 27, 2024
By Times of Central Asia

The Tashkent based Europe-Uzbekistan Association for Economic Cooperation (EUROUZ) was officially launched on December 5^th. Speaking at the inauguration event, Charlotte Adriaen, the EU Ambassador to Uzbekistan, said that the EU has been supporting the establishment of a Europe-Uzbekistan business association for years.

“We believe that the inclusion of EUROUZ in the worldwide European Business Organizations network will encourage more business exchanges between Europe and Uzbekistan, and in turn strengthen our partnership,” Adriaen said, noting that the EU supports the ambitious path of reforms Uzbekistan has embarked on, and will continue to assist the country with all tools, one of which is GSP+ (the EU’s Generalised Scheme of Preferences).

The ambassador also presented areas of opportunity for Uzbekistan’s exporters to improve their access to the EU market. “As we anticipate growth in the production of machinery, automotive, hi-tech goods and medical equipment, the demand will increase for various electronic sub-components and metal parts,” she said. “Moreover, as both the EU and Uzbekistan are transitioning to a greener economy, there is another sector of opportunity that could further boost exports from Uzbekistan to the EU, including supplies of critical raw materials.”

The EU ambassador added that 2024 will be a year marked by high-level visits, including the first ever EU-Central Asia Summit, which is planned to be hosted in Uzbekistan.

05 Dec 2023

Tajikistan International Affairs, Tajikistan Local Politics, International Affairs, Tajikistan, Kyrgyzstan International Affairs, Kyrgyzstan, Kyrgyzstan Local Politics

Kyrgyzstan, Tajikistan Agree on More Disputed Border Areas

June 27, 2024
By Times of Central Asia

As reported by RFE/RL, officials from Kyrgyzstan and Tajikistan say the two countries agreed on another 24 kilometers of the border between the two former Soviet republics after special talks on the issue were held over the past week, RFE/RL’s Kyrgyz Service reported. Tajikistan’s State Committee for National Security said on December 5^th that the talks were held in the northern town of Buston, near the Kyrgyz border. According to the Kyrgyz government, the next round of talks regarding other parts of the border will be held on Kyrgyzstan’s territory on a day that is yet to be determined.

In a sign of thawing relations, back on November 9^th 2023, the Cabinet of Ministers of the Kyrgyz Republic announced that a further 17.98 kilometres of its border with Tajikistan had been agreed upon, with another meeting of the of topographic working groups due to be held in Batken from November 11^th to17^th. A long-standing source of conflict between the two nations, it is emblematic of the problem that even the length of the border – sometimes cited as being 975-kilomtres long, and at others times 972-kilomteres – is rarely agreed upon. As of January 2023, Tajikistan’s President Rahmon stated that 614-kilometres have been agreed upon, backtracking on a previously stated figure of 664.

The delimitation and demarcation of the Kyrgyz-Tajik border has been an issue for decades, but turned into an extremely urgent problem in recent years after several deadly clashes took place along disputed segments of the frontier. With its scant natural resources and dwindling water supplies, the border has been the scene of numerous skirmishes for many years. In 2014, all borders between Kyrgyzstan and Tajikistan were closed indefinitely to Kyrgyz and Tajik citizens following clashes over a bypass road in disputed territory; mortars were fired and both armies suffered casualties. In the spring of 2021, trouble flared up again when an armed conflict along one segment of the border left 36 Kyrgyz nationals, including two children, dead, and 154 injured on the Kyrgyz side. The Tajik authorities officially said that 19 Tajik citizens were killed and 87 were injured during the clashes.

Many border areas in Central Asian former Soviet republics have been disputed since the collapse of the Soviet Union in 1991. The situation is particularly complicated around the numerous exclaves in the volatile Ferghana Valley, where the borders of Tajikistan, Uzbekistan, and Kyrgyzstan meet.

05 Dec 2023

Uzbekistan, Uzbekistan Features, International Affairs, Business & Economy, Uzbekistan Business & Economy, Uzbekistan International Affairs

Window to Europe for Uzbekistan to Remain Open Until December 2027

June 27, 2024
By Times of Central Asia

The European Union has decided to extend the validity of the General System of Preferences Plus (GSP+) for beneficiary countries, including Uzbekistan, for the next four years until December 31^st 2027. This decision gives serious impetus to the development of Uzbekistan’s private sector, providing easier access to the European market, stimulating closer cooperation between European and Uzbek companies, and leading to significant savings at borders.

As a result of the measures taken to strengthen trade relations with the EU and expand the global geography of Uzbekistan’s exports by the end of 2022, 628 enterprises (an increase of 116 on the corresponding period in 2021) were exporting local products to European markets in the amount of U$647-million. This is more than double the $292-million figure recorded in 2020.

In particular, within the framework of the GSP+ textile industry products worth $177.4-million were exported to the EU markets (an increase of 126.4% compared to 2021), agriculture and food industry products totaled $19.7-million (a 103% increase), the electrical industry recorded $9-million (a 117% increase), whilst the chemical industry totaled $138.3-million (a 4.7-times expansion).

In 2022, thanks to GSP+, Uzbek exporters saved $30.65-million in duties, thus signaling a major contribution by the EU to the development of the private sector in Uzbekistan. Over the period from 2019 to 2022, EU investment in the private sector in Uzbekistan has grown more than tenfold.

05 Dec 2023

Turkmenistan, Turkmenistan Business & Economy, Business & Economy, Turkmenistan Features, Turkmenistan Environment

Turkmenistan Preparing for Accession to Global Methane Pledge Program

June 27, 2024
By Times of Central Asia

The upcoming Climate Change Conference to be held in Dubai became the main topic of a recent cabinet meeting held by President Serdar Berdimuhamedov. At the meeting, Foreign Minister Rashid Meredov reported on preparations for participation in the 28^th Conference of the Parties to the UN Framework Convention on Climate Change (COP-28) to be held from November 30^th to December 12^th. Turkmenistan’s accession to the Global Methane Pledge (GMP) program will be announced at the meeting as one of the main steps in countering climate change.

At the meeting, Meredov proposed that Turkmenistan “continue cooperation with international organizations and partner countries in the framework of joint projects and programs aimed at fulfilling GMP conditions at a national level.” In other words, in order to meet GMP quotas, Turkmenistan is counting on the support of and joint projects with international organizations and partner countries.

Advisor to the President on Oil and Gas Issues, Ashyrguly Begliyev reported on the work of the Natural Gas Research Institute of the State Concern, Turkmengaz and the Institute Nebitgazylmytaslama of the State Concern, Turkmenneft. Their work is related to the fulfillment of the conditions of the GMP. Begliyev also spoke about taking “concrete steps to reduce methane emissions into the atmosphere, including through the use of modern technologies in the fields of energy, industry and transport.” Precisely what actions will be taken remain unclear, however.

Deputy Prime Minister Batyr Amanov, who oversees the oil and gas industry, also reported on cooperation with German partners to increase the volume of hydrocarbon production. In particular, the importance of modernizing gas compressor stations subordinated to Turkmengaz was emphasized.