Central Asian economy to steadily strengthen – WB

In 2020, global economic growth will accelerate slightly and reach 2.5% on the background of a gradual recovery in investment and trade after a significant decline in the previous year, but the risks of reducing these indicators still remain, the World Bank noted in its January report "Global Economic Prospects".

Growth in advanced economies is expected to slow to 1.4% in 2020, partly due to continued sluggish manufacturing conditions.

In emerging and developing countries, economic growth is projected to increase to 4.1% this year. However, this rise will not be widespread: on the contrary, it is due to the expected improvement in the performance of a small number of large countries, some of which are overcoming a significant decline in the recent past.

"Politicians should take advantage of the opportunity to implement structural reforms" - Vice-President of the World Bank Group 

In about a third of emerging and developing countries, growth is expected to slow this year due to lower-than-expected export and investment indicators.

“With growth in emerging and developing economies likely to remain slow, policymakers should seize the opportunity to undertake structural reforms that boost broad-based growth, which is essential to poverty reduction,” said Ceyla Pazarbasioglu, World Bank Group vice president for equitable growth, finance and institutions.

She stressed that measures to improve the business climate, strengthen the rule of law, improve debt management and increase productivity could help ensure sustainable economic growth.

Economic slowdown in some countries  

According to forecasts, the growth rate of the US economy will slow down to 1.8% this year, which will reflect the negative consequences of the earlier increase in duties and increasing uncertainty. The forecast for economic growth in the Eurozone has been revised downward: it is expected to fall to 1% on the background of low activity in the industry.

Economic growth in Europe and Central Asia is expected to strengthen to 2.6% in 2020, subject to stabilization of prices for basic commodities. It is expected that Russia's national projects involving, among other things, investment in infrastructure and human capital will give an impetus to the growth in the period beyond the forecast. In Turkey, investment and imports are forecast to start recovering from a sharp downturn in 2019.

In Central European countries, economic growth is expected to slow to 3.4% as the effect of fiscal support measures weakens and demographic problems persist, while the Central Asian economies are projected to grow steadily at a high rate due to structural changes.

It is expected that after the agreed reduction in oil production in Kazakhstan, the growth rate of the Central Asian economy will slow down to 4.4%.