The Eurasian Development Bank (EDB) has released the latest Macroeconomic Review for its six member states — Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan.
In the face of a challenging external economic environment, the Review says, the EDB region saw a strong recovery in 2023, with the aggregate GDP of the Bank’s member states increasing by almost 4%. According to EDB analysts, this growth was propelled by internal drivers such as robust consumer and investment demand, as well as effective adjustments in production to accommodate changing operating conditions.
Among the Bank’s member states in Central Asia, Kazakhstan’s economy showed robust growth, surpassing 5% by the end of 2023, largely due to government programs aimed at unlocking the country’s investment potential. The Macroeconomic Review highlights that investment and trade increased by 13.7% and 11.3%, respectively, over the year. Inflation in Kazakhstan continued to decline, with the year-on-year inflation rate dropping from 9.8% in 2023 to 9.5% in January 2024, laying the groundwork for further monetary policy easing.
Kyrgyzstan also experienced active development, with GDP growing by 6.2% in 2023, supported by stronger consumer demand and increased investment activity. Inflation in the country halved to 7.3% year-on-year in 2023, but the National Bank maintained its discount rate unchanged at 13% per annum due to persistent pro-inflationary risks.
In Tajikistan, strong domestic demand and increased exports drove an 8.3% GDP growth in 2023. Inflation declined to 3.8% year-on-year at the end of 2023, close to the lower bound of the National Bank’s target range.
