Central Asia faces a bleak economic outlook and policy-makers should prepare for the long haul as the shocks buffeting the region are likely to be enduring, the International Monetary Fund has said.
In Central Asia, “the situation and outlook are worse than for the world economy as a whole,” Juha Kahkonen, deputy director of the IMF’s Middle East and Central Asia Department, said at a briefing in Almaty on October 23. “This is because the region has been hit by three major external shocks.”
The IMF identifies the wave of external shocks as the fall in global prices for the commodities that Central Asia exports, which range from oil and gas to metals, repercussions from the recession-hit Russian economy, which the IMF expects to contract by 3.8 percent this year, and the shifts in major global exchange rates pressuring regional currencies.
Added to all those woes is the slowdown in China, a major trading partner and investor for the Central Asian states.
To read the full story