BISHKEK (TCA) — Economic growth in Europe and Central Asia is anticipated to ease to 2.9 percent in 2018 from an estimated 3.7 percent in 2017, the World Bank says in its January 2018 Global Economic Prospects.
Growth in the region strengthened more than expected to 3.7 percent in 2017 from 1.7 percent the previous year.
The region’s two largest economies, Russia and Turkey, accounted for most of the region’s expansion. Russia expanded by 1.7 percent after two years of recession thanks to stabilizing oil prices, supportive monetary policies, and lower inflation. Turkey’s growth leap – to 6.7 percent in 2017 from 3.2 percent the preceding year – came with the help of fiscal stimulus.
Kazakhstan jumped to a 3.7 percent growth rate in the year just ended from a 1.1 percent expansion in 2016 boosted by increased production at the Kashagan oil field, which was exempted from production cuts agreed upon by members of the Organization of the Petroleum Exporting Countries (OPEC).
Growth in Europe and Central Asian region is expected to slow to 2.9 percent in 2018 amid a slowdown of the Turkish economy while output expands in the commodity-exporting eastern part of the region, and stabilize at 3 percent in 2019-20.
Russia has adjusted to the new level of oil prices and is expected to continue to expand at a 1.7 percent rate this year.
Kazakhstan is anticipated to moderate to a 2.6 percent growth rate as the one-time effects of increased oil production and fiscal stimulus wane.
Growth in Kyrgyzstan is expected at 4.2 percent in 2018 compared to 3.5 percent last year.
In Tajikistan, growth is expected at 5 percent in 2018 after 5.2 percent in 2017.
In Turkmenistan, the economy is expected to grow by 6.3 percent compared to 6.4 percent last year.
And in Uzbekistan, growth is expected at 5.6 percent compared to 6.2 last year.