2024-04-24 13:53:50
Economic growth in the Caucasus and Central Asia will remain robust in 2024.
As Day.Az reported on Thursday, the director of the IMF’s Middle East and Central Asia Department, Jihad Azur, said this today during a briefing at the IMF Spring Meetings in Washington.
“Growth in the Middle East and North Africa is constrained by conflicts, lower oil production, trade disruptions and high debt. Risks are exceptionally high. Growth in the Caucasus and Central Asia remains robust, supported by positive trade and financial flows. Growth in countries is expected “The Caucasus and Central Asia will be 3.9 percent in 2024 and 4.8 percent in 2025, and in the countries of the Middle East and North Africa – 2.7 percent in 2024 and 4.2 percent in 2025,” he said.
Azure noted that even 10 years after major conflict, per capita income in the Middle East and Central Asia remains about 10 percent lower than in other conflict-affected countries.
“An uneven recovery is expected in the Middle East and North Africa, as well as in the Caucasus and Central Asia. While inflation is falling in most countries in line with global trends, growth prospects vary across countries. Starting in the Middle East and North Africa, the conflict in Gaza and Israel has caused enormous suffering. In addition, disruptions to shipping in the Red Sea have exacerbated existing vulnerabilities,” said the IMF Department Director.
Conflicts are negatively impacting activity in some fragile, low-income countries, he added.
“Our analysis shows that the conflict not only results in long-term human and social costs, but can also lead to large and permanent losses in output, with potential consequences for other countries. We forecast that economic growth in the Caucasus and Central Asia will remain robust this year In addition, the reorientation of trade changes trade in the Caucasus and Central Asia region,” Azur said.
He noted that the second problem is inflation.
“Inflation is falling in line with global trends and is approaching historical trends in many economies, with about 1/3 of countries now near or below average, and monetary tightening cycles appear to have ended in most economies. Next year, in the Caucasus and Central Asia, inflation will be below the target or close to it. Inflation is projected to decrease from 7.7 percent in 2024 to 7.1 percent next year,” said the director of the IMF Department.
It should be noted that on April 15, the Spring Meetings of the International Monetary Fund and the World Bank Group started in Washington.
Major ministerial meetings and events will be held April 17-19, and other meetings will be held April 15-20.
Key events include meetings of the Development Committee and the International Monetary and Financial Committee of the IMF, which discuss the progress of the work of the World Bank Group and the IMF.
The Spring Meetings bring together central bankers, finance and development ministers, parliamentarians, private sector representatives, civil society organizations and academics to discuss issues of global concern, including the global economy, poverty eradication, and economic development.
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