Central Asia faces a gloomy economic outlook for the rest of this year and into next, battered by the tanking Russian economy and low commodity prices, according to a regional outlook released by the International Monetary Fund (IMF) on May 19. Several countries face double-digit inflation.
“The region has been hit by two major external shocks: the oil price and the slowdown in the Russian economy,” Juha Kahkonen, deputy director of the IMF’s Middle East and Central Asia department, told a briefing in Almaty as the forecast was released.
Growth slowed last year and is set to decrease “much more significantly” this year, he said, before recovering “only slightly” next year.
All the Central Asian states are feeling the pinch of the slump in Russia, “which has close linkages with the region through remittances, trade, and foreign direct investment,” the IMF pointed out.
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