Central Asian Countries Strive to Promote Economic Recovery (International Perspective)

The recent Global Economic Outlook report released by the World Bank predicts that the Central Asian economy is expected to achieve a growth rate of 3.9% in 2023. Central Asian countries have continuously introduced a series of policies and measures to boost their economy, actively cultivating new economic growth points, and striving to reduce the adverse effects of external factors. The overall economic recovery momentum of the region is relatively obvious.
Multiple data performance is impressive
The latest data from the official website of the Prime Minister's Office of Kazakhstan shows that in the first 11 months of 2023, Kazakhstan's economic growth rate was 4.9%, and the per capita GDP increased from $11500 at the beginning of the year to $13300. Based on the growth momentum of Kazakhstan's economy, the Asian Development Bank recently raised the country's GDP growth forecast for 2023 from 4.1% in September to 4.5%.
According to data released by the National Statistical Commission of Kyrgyzstan, the country's GDP in the first three quarters of 2023 was 808 billion soms (1 US dollar is approximately 89 Kyrgyz soms), a year-on-year increase of 4.2%; The total foreign trade volume increased by 27% year-on-year, reaching 9.407 billion US dollars. The mining industry has long dominated the Jilin economy. In the first nine months of 2023, excluding gold mines, the revenue from mining in Jilin reached 37.52 billion soms, a year-on-year increase of 12.3%.
The Eurasian Development Bank recently raised Tajikistan's economic growth forecast for 2023 to 8.2%, and is expected to reach 7.3% in 2024. According to the analysis of the Eurasian Development Bank, Tajikistan's GDP increased by 8.3% year-on-year in the first three quarters of 2023, and the trade and construction industries made significant contributions. "The expansion of industrial sector capacity, as well as increasingly frequent investment activities, will continue to support the steady growth of Tajikistan's economy."

According to official data released by Turkmenistan, its GDP grew by 6.3% in the first 11 months of 2023, achieving uninterrupted growth for 11 consecutive months. Turkmenistan is the largest energy exporter in Central Asia, with a year-on-year increase of 9.4% in natural gas production and 14.3% in exports in the first three quarters of 2023. Turkmenistan's Deputy Prime Minister Gerdimuladov recently stated that in 2023, Turkmenistan has achieved growth in various economic sectors and is striving to promote balanced development in various regions, gradually improving people's living standards.

In the first nine months of 2023, Uzbekistan's GDP grew by 5.8%. The tourism industry has become one of the important driving forces for the country's economic growth. Since 2023, Uzbekistan has added 15000 new tourist accommodation points, with a total of 137000 guest rooms; The number of international flights at Samarkand International Airport, the second largest airport in Uzbekistan, has increased from 46 to 85 per week. In the first eight months of 2023, the number of international tourists to Uzbekistan reached 4.3 million, creating approximately $1.4 billion in economic benefits; The number of domestic tourists has reached 15 million, which is twice the number for the entire year of 2022.
Taking multiple measures to stabilize growth
To promote economic recovery and development, Central Asian countries have continuously introduced a series of policies and measures to stabilize growth and protect people's livelihoods, achieving certain results.
The Kazakh government actively promotes the implementation of the "Bright Road" new economic policy as a priority, ensuring fair market competition, stimulating the enthusiasm of private enterprises, and promoting fair distribution of national income. To encourage the development of the oil and gas industry, the Ministry of National Economy of Kazakhstan has committed to exempting 10 years of corporate income tax for new natural gas projects, while actively expanding cross-border energy transportation routes and diversifying oil and gas exports, including building a cross Caspian Sea international transportation corridor to the west and expanding the scale of China Kazakhstan oil pipeline transportation to the east.
The Uzbekistan government introduced the "Uzbekistan 2030" strategy in September 2023, aiming to double GDP to 160 billion US dollars and increase per capita GDP to 4000 US dollars by 2030. To achieve this goal, the Uzbek government hopes to attract $250 billion in new economic investment in the coming years and plans to implement over 500 strategic technology and infrastructure construction projects, focusing on promoting industrial technology modernization and transformation, and producing more high value-added and high-tech products. The Uzbekistan government has stated that it will improve urban infrastructure construction, simplify tax procedures, and enhance the attractiveness of investment in the country.
Tajikistan is increasing its efforts to promote economic structural transformation. The Tajikistan government has stated that it will vigorously develop the digital economy, accelerate the formulation and implementation of artificial intelligence strategies, and promote the implementation of the Tajikistan 2021-2025 Digital Economy Development Plan. The Tajik government also hopes to accelerate the country's industrial transformation, promote the implementation of the 2030 Industrial Development Strategy of the Republic of Tajikistan, and fully leverage the important role of the industrial sector in economic development.
Turkmenistan continues to introduce policy measures to improve the business environment, further attract foreign investment, and strengthen policy guidance to improve the domestic industrial system. It continues to introduce advanced oil and gas exploration, extraction, and storage technologies, promote the development of natural gas and oil extraction and export industries, and ensure Turkmenistan's advantageous position in the field of energy exports.
Continuously deepening cooperation with China
China has long been a major trading partner of Central Asian countries. Under the framework of jointly building the "the Belt and Road", China and the five Central Asian countries have carried out a series of fruitful practical cooperation in the fields of connectivity, oil and gas exploration, processing and manufacturing, and injected strong impetus into the economic recovery of Central Asia.
Turiakov, Director of the Uzbekistan Development Strategy Center, stated that in 2022, China's trade volume with the five Central Asian countries reached a historic high of 70.2 billion US dollars. In the first 10 months of 2023, China's imports and exports to the five Central Asian countries increased by 34.8%. China's direct investment in Central Asia is steadily increasing, effectively enhancing the stability of the regional industrial and supply chains, and making important contributions to the economic development of the region. It is understood that China and Uzbekistan are continuously promoting practical cooperation in various fields. Only in the new energy vehicle industry, it is expected that within 10 years, Uzbekistan will install 50000 charging piles jointly developed with Chinese partners.
In the first 10 months of 2023, the total amount of goods trade between China and Kazakhstan exceeded 32.7 billion US dollars, a year-on-year increase of 28.9%. At present, Kazakhstan has started the construction of a new railway to China - the Ayaguz Tacheng Railway. This double track railway is planned to be put into operation in 2027, and after completion, it will increase the cargo trade capacity between the two countries by 20 million tons. Kazakhstani Prime Minister Smilov believes that Kazakhstan China relations are facing huge development opportunities, and economic and trade cooperation will play an important role in them. I believe that in the coming years, the two countries will achieve the goal of increasing bilateral trade volume to 40 billion US dollars, and more Chinese enterprises will expand business opportunities in Kazakhstan.
Zaren Rennalyev, Deputy Director of the State Investment Agency under the President of Kyrgyzstan, stated that China has always been the main source of foreign investment in Kyrgyzstan. Investment in Kyrgyzstan covers multiple fields such as minerals, energy, and transportation infrastructure construction, injecting vitality into the development of Kyrgyzstan's real economy, creating a large number of job opportunities, and achieving good economic and social benefits.
Analysis suggests that in the future, Central Asian countries and China will further deepen cooperation, jointly promote the construction of transportation projects such as the Cross Caspian Sea International Transport Corridor and the China Kyrgyzstan Ukraine Railway, and expand cooperation in e-commerce, agricultural technology, new energy industries, and other high-tech fields, which will help promote sustained and stable economic growth in the region.