OUTLOOK 2015: Russia effect hits Central Asia to greater and lesser degrees

By bne IntelliNews December 19, 2014

Naubet Bisenov and Jacopo Dettoni in Almaty

bne IntelliNews
 

The Asian Development Bank, in its latest "Asian Development Outloook Supplement" published on December 17, cut the growth outlook for Central Asia to 5.1% from the previous 5.6% for the full-year 2014 and to 5.4% from the previous 5.9% for 2015. The countries in the region most exposed to Russia – Kazakhstan and Kyrgyzstan – are feeling the full effects of the crisis there, while the more closed economies appear more sheltered from the problems, though are still being hit by the fall in remittances.

"Central Asian economies are feeling the impact [of the slowdown in Russia] through reduced remittance inflows and muted external demand, which is undermining growth in Armenia, the Kyrgyz Republic, and Uzbekistan," the report reads. "Positive news in Tajikistan (where robust construction is more than compensating for the effect of the slowdown in the Russian Federation) and in Turkmenistan (where climbing gas exports are expected to boost 2015 growth) is insufficient to offset slowdowns in the rest of the subregion."

Falling oil prices and geopolitical tensions in the region, as well as the weaker demand for Kazakh exports from the country's main trading partners, are painting a bleaker picture for Kazakhstan’s economic growth in 2015. The stagnant oil and gas sector due to repeated delays in industrial production in the giant Kashagan oilfield and lower global prices of metals has meant industrial output fell in the first 10 months, picking up only in November to give a meagre increase of 0.1% for the January-November period.

To read more, click here.

Related Articles

Almaty cost of living lowest among major cities

Kazakhstan’s largest city and business centre Almaty has dropped to last place on the Economist Intelligence Unit’s bi-annual ranking of the ... more

EBRD says 2016 net profit was around €1bn

The European Bank for Reconstruction and Development (EBRD) said it made a net profit of around €1bn in 2016, up by a quarter from the €802mn it made in ... more

Kazakh economy minister predicts 2.8% growth in 2017 on higher oil prices

Kazakhstan’s Economy Minister Timur Suleimenov predicted in a March 2 interview with Reuters that higher-than-expected oil prices may push Kazakh GDP growth to ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss