(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 2. The Asian Development Bank (ADB) has raised its 2025 growth forecast for the Caucasus and Central Asia to 5.5%, citing strong performance in Kazakhstan, but lowered its 2026 projection to 4.9% due to expected declines in Azerbaijan's hydrocarbon output, Trend reports.

In the first half of 2025, growth across the region was buoyed by robust activity in construction, trade, and services. Kazakhstan's economy expanded by 6.2%, driven by higher oil production, infrastructure investment, and gains in manufacturing and services. Uzbekistan grew 7.2%, supported by consumption, investment, and strong gold exports. Kyrgyzstan posted 11.7% growth, with notable gains in construction and trade, while Tajikistan recorded 8.1%, supported by industry and remittances. Turkmenistan reported steady 6.3% growth, underpinned by agriculture, services, and large public investments.

Georgia also reported strong momentum in the first half of the year, with expansion in services, industry, and construction. By contrast, Azerbaijan's growth slowed as hydrocarbon production and services weakened, despite a pickup in construction.

According to the ADB, upward revisions for Kazakhstan and Georgia offset lower forecasts for Azerbaijan, Kyrgyzstan, and Turkmenistan in 2025. However, declines in Azerbaijan's energy sector are expected to weigh more heavily on regional growth in 2026.

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