BISHKEK, Kyrgyzstan, September 12. Economic growth in the Caucasus and Central Asia (CCA) is expected to slow to below 4 percent in the medium term, said IMF Deputy Managing Director Bo Li within the frame of his visit to Kyrgyzstan, Trend reports.
He noted that inflation in the region is likely to stabilize within the middle range of single-digit levels.
“Escalation of the war in Ukraine and the Gaza conflict, however, could cause commodity price volatility and a reversal of the recent trade patterns," he said.
According to him, it's time to join forces and take decisive steps to initiate a new wave of reforms that will boost growth, create more jobs, and improve living standards. These reforms should focus on increasing productivity, enhancing resilience, and expanding markets.
He mentioned that the planned China-Kyrgyzstan-Uzbekistan railway is a prime example of regional cooperation aimed at improving connections between East and West, helping the region regain its historical role.
"You have abundant renewable energy resources in the region, including hydro, solar, and wind power. Enhanced energy cooperation will help develop regional energy markets, ensure security, and create export opportunities. Collaborative projects, such as Kambarata-1, can help diversify the energy mix and reduce dependency on fossil fuels. Critically, it can also improve water availability for neighboring countries,'' he said.
According to Bo Li, the railway and Kambarata-1 hold enormous potential for regional development and connectivity.