Russia’s bordering nations experience economic growth
Date
12/18/2024 7:30:13 AM
(MENAFN) Countries within the Eurasian Economic Union (EAEU) are experiencing significant economic growth, driven by Western sanctions related to the Ukraine conflict and increased demand, with their collective GDP projected to exceed 4% growth this year, according to the Eurasian Development bank (EDB). The five-nation bloc, including Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan, is expected to see a 4.2% growth in 2024, surpassing the global average of 3.2%. Tajikistan, although not part of the EAEU, is also included in the forecast.
Despite global challenges, the region has shown resilience, with 2023 marking the best performance for these economies since 2012, excluding the post-pandemic recovery period. The nominal GDP of the region is set to exceed $500 billion in 2024, and Central Asia’s growing population, now over 80 million, presents a long-term opportunity for economic growth.
The region's increasing significance as an investment hub, dynamic market, and key transit point comes at a time when the global economy faces a slowdown. The EDB forecasts continued growth in Russia and Belarus, as well as strong GDP increases in Armenia, Kazakhstan, Kyrgyzstan, and Tajikistan, fueled by industrial activity and investments. In response to Western sanctions, Russia is intensifying trade and economic ties with allied countries, shifting from dollar and euro-based transactions to local currencies within the EAEU.
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