| More Diversified Trade Can Make Middle East and Central Asia More Resilient
May 13, 2024--Reducing trade barriers, easing regulatory constraints, and upgrading infrastructure can mitigate challenges and help countries leverage new opportunities. |
| While this has created challenges, the redirection of trade has also generated new opportunities, particularly for the Caucasus and Central Asia.
Since the war began, the region's economies have shown continued resilience and trade activity in many countries has surged, fueled in part by alternative trade routes. In 2022, Armenia, Georgia, and the Kyrgyz Republic saw their share of trade excluding oil and gas with major partners such as China, the European Union, Russia, and the United States rise as much as 60 percent. Hence, despite some moderation, gross domestic product growth in the Caucasus and Central Asia is projected to remain robust at 3.9 percent in 2024 before picking up to 4.8 percent in 2025. |