BAKU, Azerbaijan, October 15. Potential investments in the Middle Corridor offer countries in the region the prospect of deeper integration into the global economy, the Director of the Middle East and Central Asia Department at the International Monetary Fund, Jihad Azour said, Trend's correspondent reports.
“Over the past few years, most countries in Central Asia and the Caucasus have demonstrated higher rates of economic growth compared to the previous cycle, that is, the period before 2022, as well as compared to many other countries around the world,” he said.
Azour stated that these countries have reaped certain benefits thanks to the redirection of investment and migration flows, increased investment, and the reorientation of trade routes.
“As a result, in recent years, economic growth rates in these countries have been higher than in most other countries in the region. Although, according to our forecasts, growth rates will gradually converge in 2026–2027, at the same time we are observing certain differences in the economic dynamics of individual countries.
This is due to a combination of external factors and domestic conditions, including a solid institutional framework, the ability to effectively implement monetary and fiscal policies, as well as deeper coordination and cooperation among countries in the region," he added.
At the same time, as Azour noted, the acceleration of economic growth in recent years has also revealed risks of rising inflation.
“Therefore, we recommend that countries continue to pay special
attention to containing inflation, using monetary policy as the
primary tool for response.
Undoubtedly, various shocks and the increasing fragmentation of the
global economy have heightened the appeal of regional cooperation,
as well as the strengthening of these countries’ ties with the rest
of the world.
Potential investments in the Middle Corridor and opportunities to expand trade with China, Europe, and even the Middle East open up prospects for the countries of the region to integrate more deeply into the global economy," he said.
Azour added that countries are already investing in the infrastructure needed to realize these opportunities.
“However, this process may take time. In addition to infrastructure investments, it will be necessary to improve the institutional environment, expand the role of the private sector, reform state-owned enterprises, and reduce the scope of the state’s presence in the economy,” he stated.