ABD - The Times Of Central Asia

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Central Asian Economies to See Continued Growth in 2024 and 2025

The latest economic outlooks from the European Bank for Reconstruction and Development (EBRD) and Asian Development Bank (ADB) project continued economic growth in the five Central Asian countries in 2024 and 2025. According to the latest edition of the EBRD’s Regional Economic Prospects report, Kazakhstan’s economy will grow by 4% in 2024, with upside from public spending to restore flood-affected infrastructure and housing. The trade, transport, warehousing, services, and IT sectors were the main growth drivers for Kazakhstan in the first half of the year. The EBRD forecasts that in 2025, the country’s real GDP will likely grow by 5.5% amid the planned expansion of the Tengiz oil field. The Asian Development Bank’s (ADB) Asian Development Outlook (ADO) September 2024 projects 3.6% growth of Kazakhstan’s gross domestic product (GDP) this year, slightly lower than the bank’s previous forecast of 3.8% in April 2024. The reason is a weaker service expansion in the first half of the year, lower oil outputs, massive spring floods, and a slowdown in investment. ADB forecasts Kazakhstan’s economic growth to accelerate to 5.1% in 2025. The government of Kazakhstan anticipates the country’s economic growth at 5.6% in 2025. The EBRD report forecasts Kyrgyzstan’s GDP growth to reach 9% in 2024 before moderating slightly to 7% in 2025. The country’s growth potential stems from the expansion of tourism, investment in infrastructure, and gold exports. Both remittances and real wages have remained elevated, helping retail and wholesale trade grow. ADB projects 6.3% growth for Kyrgyzstan in 2024 and 5.8% in 2025. Kyrgyzstan’s Ministry of Economy forecasts economic growth of 6.3% in 2024 and 6% in 2025. Kyrgyzstan’s Minister of Economy, Daniyar Amangeldiev, has explained why the economic forecasts from international financial institutions sometimes differ from those of the Kyrgyz Ministry of Economy. According to Amangeldiev, the forecasts differ because international financial organizations often do not take into account specific measures and actions that the government plans, each of which would potentially impact the country’s economic growth. He added that international forecasts can be skeptical, based on data that may not reflect all the government's actions. According to the EBRD report, Tajikistan’s GDP growth is projected to reach 8% in 2024 and 7% in 2025. Hikes in public-sector salaries, pensions, and minimum wages drove domestic demand in the year's first half, boosting the retail and wholesale trade sectors. The resumption of precious and semi-precious metal exports increased public infrastructure spending, and fixed capital investment was a major growth factor. However, fluctuations in remittances from Tajik labor migrants working in Russia present a significant downside risk for the Tajik economy. ADB forecasts Tajikistan’s economy to grow 6.5% in 2024 and 2025. The EBRD report says Turkmenistan’s economy has shown stability in recent years, citing investment in public infrastructure projects, production facilities, and fixed capital investment as key growth factors. Launching a new single window for export-import operations has improved Turkmenistan’s customs efficiency and simplified transit procedures, enabling higher freight turnover. This has led to the expansion of the country’s transportation sector. The EBRD forecasts...

Water Conservation Water Management Access to Clean Water Drinking Water EDB water saving ABD Politics Finance

Ecological Limit: Five Year Countdown to Water Scarcity in Central Asia

Combating climate change requires collective action by all or a sufficient majority of the world's players supporting global initiatives. Otherwise, it may soon be too late to take any action. To address the issue, the Eurasian Development Bank, the CAREC Think Tank, and the Asian Development Bank organized a two-day forum entitled “The Climate Challenge: Thinking Beyond Borders for Collective Action,” in Almaty, Kazakhstan. Focusing on means of achieving genuine regional cooperation on Asian climate action, the eighth CAREC Think Tank Development Forum was attended by policymakers, experts, and opinion leaders from more than 30 countries. The extensive two-day dialog, consisting of eight sessions, opened with a discussion on the effectiveness of current global initiatives related to climate change: the Paris Agreement, the Global Environment Facility, and the Green Climate Fund. Attention then turned to deepening cooperation among as many stakeholders as possible through multilateral platforms such as the UN Framework Convention on Climate Change. Asia's role in the global fight against climate change, and the difficult balancing act between economic growth and decarbonization efforts were discussed at length. Simply put, the rapid growth of the Asian economy is inevitably accompanied by an increasing consumption of energy, the generation of which leads to increased emissions and pollution. Climate damage due to human impact can be halted and even reversed. However, because this can only be achieved with technological intervention, it poses problems for developing economies unable to afford advanced technologies. Hence, establishing a framework and mechanisms for global technology transfer were key to discussions. Water and finance were also high on the agenda and the subject of a paper presented by Arman Ahunbaev, Head of the Center for Infrastructure and Industrial Research of the Eurasian Development Bank on “Ways to close the investment gap in the drinking water supply and wastewater sector in Central Asia." Ahunbaev reported that 10 million people, or 14% of the population in Central Asia, do not have access to safe drinking water and warned that without intervention, the situation would reach the point of no return in the coming years. To prevent this from happening, he stressed the urgent need for solutions to four problems. The first problem is a twofold increase in the volume of water intake for municipal and domestic needs, based on past figures which showed a growth from 4.2 cubic kilometers in 1994 to 8.6 cubic kilometers in 2020. The second problem is the severe deterioration of water supply infrastructure and treatment equipment, and the third, technological and commercial water losses in distribution networks. The fourth problem is related to the demographic boom and, consequently, the rapid urbanization of Central Asia's population. Cities are expanding and their infrastructure needs to develop accordingly. According to experts, in 2023, urbanization in Central Asian countries will reach 49%, and by 2050, 61%. By 2030, the urban population will exceed that in rural areas. Ahunbaev noted the need for improvement in financing the water supply and sanitation sector in Central Asia since according to rough...

Banking Economy Asian Development Bank Partnership ABD

ADB New Partnership Strategy for Uzbekistan Focuses on Transition to Green Economy

On August 27, the Asian Development Bank (ADB) announced the launch of a five-year country partnership strategy for Uzbekistan from 2024 to 2028. The strategy will support the country’s reforms to transform into a green and inclusive economy. Aligned with the government’s priorities in its long-term development plan, known as “Uzbekistan-2030,” the ADB strategy will assist the Uzbek government in facilitating the country’s transition to a green economy, supporting private sector development and competitiveness, and promoting investments in human capital. ADB's Director General for Central and West Asia, Eugene Zhukov, commented: “ADB’s new partnership strategy for Uzbekistan will support the country in achieving its strategic goals in transitioning to a green economy by 2030. As a long-term trusted partner of Uzbekistan, ADB remains committed to helping the country sustain its robust economic expansion and reduce poverty even amid external global and regional shocks.” The new strategy provides ADB interventions in various sectors, including energy, public sector management and governance, finance, transport, agriculture and natural resource management, and urban development. The bank will also support development in education and social protection. ADB will strengthen macroeconomic and fiscal reforms, as well as the transformation and preparation of state-owned enterprises for privatization. The bank will support private sector engagement in economic development, including improvements to the domestic financial markets and infrastructure investments. ADB support will focus on improving the quality and inclusivity of education and skills development in Uzbekistan, enhancing access to health and social services, and encouraging greater private sector participation. ADB will also continue its partnerships with Uzbek civil society organizations to combat climate change, invest in people, advocate for gender equality, and support vulnerable groups. Since 1995, ADB has provided Uzbekistan $12.5 billion worth of loans, grants, and technical assistance.