BAKU, Azerbaijan, September 28. The Middle Corridor has the potential to become a driver of economic growth, boosting gross domestic product (GDP) by approximately 3.3% and employment by 2.9% in the countries it passes through.
This was stated in the World Bank report “Integration: World-Class Trade Logistics along the Trans-Caspian Transport Corridor.”
As noted in the report, achieving these targets is possible provided that appropriate investments are made, along with additional reforms in policy, institutions, and operations.
According to the report, investments in the Trans-Caspian Transport Corridor can deliver economic benefits to the countries of Central Asia, the South Caucasus, and Türkiye, primarily by improving transport connectivity and reducing trade and transport costs.
"The World Bank’s macroeconomic modeling shows a positive, albeit varying in magnitude, impact on GDP and employment in all countries participating in the corridor’s development.
In the long term, the average GDP growth of the corridor’s member economies is estimated at approximately 3.3%.
Larger economies, such as Kazakhstan and Türkiye, may see the greatest absolute growth, reflecting the size of their economies and their central position within the corridor network. At the same time, small landlocked countries, including Armenia and Kyrgyzstan, are expected to experience higher growth in relative terms as a result of improved transport connectivity.
The impact on employment is also estimated to be positive in all countries through which the corridor passes. Overall employment growth could reach 2.9%.
The most significant employment growth is expected in construction, trade, and business services, as well as in related manufacturing, transportation, and the agri-food sector," the report states.
The World Bank also notes that countries located at a relatively greater distance from the main sections of the corridor, including Tajikistan, could benefit from lower transportation costs and improved access to regional markets.
In addition, it is noted that the development of the Trans-Caspian Transport Corridor could also help reduce greenhouse gas emissions and increase resilience to climate and natural risks. According to a World Bank assessment, provided that sustainability requirements are taken into account when implementing investments and that efficiency and coordination are improved, the development of the corridor could reduce transportation-related greenhouse gas emissions by approximately 3.2%.
