Major infrastructure and investment projects, including the development of the Middle Corridor, as well as stronger transport and logistics links, are essential to increasing the resilience of economies in the Caucasus and Central Asia to external shocks.
“Operative Information Center-OMM” reports that Roberto Cardarelli, deputy director of the International Monetary Fund’s (IMF) Middle East and Central Asia Department, made the remarks at the presentation of the fund’s regional economic outlook for the Middle East and Central Asia in Uzbekistan.
According to the IMF official, two factors are particularly important in reducing the region’s vulnerability to external crises: stronger regional ties and private-sector development.
“The first area is engagement with partners and regional trade — these factors always help strengthen economic resilience. Implementing investment projects is also very important. We know that the development of the Middle Corridor is being actively discussed in the region,” Cardarelli said.
He described stimulating the private sector as the second key priority, stressing that businesses are among the main drivers of economic growth and help open new markets and diversify economies.
Cardarelli said excessive reliance on a single sector makes national economies more vulnerable to external shocks. He cited tourism, which was severely hit during the COVID-19 pandemic, and the oil sector, which is exposed to sharp price fluctuations.
“Combining regional integration, including through projects such as the Middle Corridor, with the development of private initiative will enable countries to minimize losses in the event of adverse scenarios in the future and make the most of favorable market conditions,” he added.
