Baku: The Asian Development Bank (ADB) has adjusted its growth forecasts for the Caucasus and Central Asia, increasing its 2025 outlook to 5.5% while reducing the 2026 projection to 4.9%, citing anticipated declines in Azerbaijan’s hydrocarbon output.
According to Trend News Agency, the first half of 2025 saw significant economic activity across the region, particularly in construction, trade, and services. Kazakhstan’s economy surged by 6.2%, fueled by increased oil production, infrastructure investments, and improvements in manufacturing and services. Uzbekistan experienced a 7.2% growth, driven by consumption, investment, and robust gold exports. Kyrgyzstan posted an impressive 11.7% growth, with gains in construction and trade, while Tajikistan recorded 8.1%, supported by industry and remittances. Turkmenistan maintained steady growth at 6.3%, backed by agriculture, services, and significant public investments.
Georgia demonstrated strong momentum in the first half of the year, with expansions noted in services, industry, and construction sectors. In contrast, Azerbaijan’s growth decelerated due to weakening hydrocarbon production and services, despite an uptick in construction activities.
According to the ADB, the upward revisions for Kazakhstan and Georgia have offset lower forecasts for Azerbaijan, Kyrgyzstan, and Turkmenistan in 2025. However, anticipated declines in Azerbaijan’s energy sector are expected to exert more substantial pressure on regional growth in 2026.