The negative impact of the events in Ukraine on the countries of the Caucasus region and Central Asia was limited, Deputy Managing Director of the International Monetary Fund (IMF) Bo Li said at an online seminar.
However, the situation for them remains uncertain and its worsening in the future is not ruled out, Bolshe Li added, TASS reports.
Speaking about the economic impact of the conflict in Ukraine on these countries, he noted that "the negative impact has so far been limited or contained."
"We expect GDP growth of 4.7% in the Caucasus region and Central Asia in 2022. This is significantly better than what we expected two months ago," he added. "Two months ago we were expecting about 2.6%," Bo Li explained, speaking about earlier forecasts of GDP growth in the region.
"The recession in Russia was not as severe as originally expected," he explained the reasons for such an increase in economic growth in the regions.
Bo Li noted that the countries of the region maintain "strong economic ties with Russia."
A positive role for the countries of the Caucasus region and Central Asia was played by the diversification of the economy, as well as the arrival of "new immigrants" from Russia and "the outflow of capital from Russia," Bo Li said.
At the same time, Bo Li noted that the economic situation in the region "can certainly worsen." As he explained, there is "significant uncertainty" about the fighting in Ukraine, as well as the negative impact of anti-Russian sanctions.
According to the IMF classification, the countries of the Caucasus region and Central Asia include Azerbaijan, Armenia, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.
CentralasianLIGHT.org
March 8, 2023