BAKU, Azerbaijan, April 16. The economies of Central Asian countries are demonstrating sustainable growth despite external challenges, said Roberto Cardarelli, Division Chief of the South America II Division in the IMF’s Western Hemisphere Department, and the mission chief for Argentina, at the International Monetary Fund (IMF) media briefing, Trend reports.
"The Central Asian region continued to do well in 2025. Growth was a half percentage point faster than we expected last October, about 6.2% on aggregate for the region. It is a pace of growth for all the countries in the region. It is above what we think is sustainable, what we call potential," he said.
According to Cardarelli, growth in the region's countries is supported by strong domestic demand.
"The story there is mainly very strong demand, domestic demand, fueled by very strong wage growth, remittances," he added.
Cardarelli emphasized that the indirect consequences of the war between Russia and Ukraine also played a significant role.
"We observed an influx of both financial and human capital, as well as an increase in remittances, which bolstered domestic demand. However, we expect these factors to weaken over time, with growth rates returning to a more sustainable level," he added.
At the same time, according to him, inflation in the region remains elevated.
"Despite some deceleration compared to previous expectations, inflation is still at a high level. As growth rates and domestic demand slow down, it is expected that inflation will also gradually decrease," Cardarelli said.
He noted that, despite differences between the countries of the region, the general trend remains one of steady growth and elevated inflation.