Tag Archives: economy

Armenia growth to slow

SEPT. 17 2014 (The Conway Bulletin) – The Moody’s rating agency joined other analysts by downgrading economic growth predictions for Armenia because of a slowdown in Russia’s sanctions-hit economy, media reported. Moody’s said that Armenia would experience economic growth of 2.1% this year compared to earlier forecasts of 3.2%.

ENDS

(News report from Issue No. 201, published on Sept. 24 2014)

Turkmenistan increases oil production

SEPT. 17 2014 (The Conway Bulletin) – Turkmenistan increased its oil products production by nearly 2% in the first half of the year, media reported quoting official statistics. Although a marginal increase it is important because Central Asia is experience a general shortage of oil products.

ENDS

(News report from Issue No. 201, published on Sept. 24 2014)

Sanctions on Russia hit Armenian cheese industry

SEPT. 24 2014 (The Conway Bulletin) – Each cloud, so the saying goes, has a silver lining. For Armenia’s economy, hit badly by EU and US imposed sanctions on its main trading partner Russia, this could be its cheese industry.

Last month in retaliation for EU sanctions, Russia banned most agriculture imports from the EU. One of the biggest imports was cheese. There is now a shortage of cheese in Russia, presenting its neighbours, including Armenia, with an opportunity, as Armen Gigoyan, head of Armenia’s cheese manufacturers’ union explained.

“We supply approximately 1,500 tonnes of cheese to Russia every year. Under the current vacuum conditions in the Russian market, we could export up to 5,000 tonnes, but shortage will occur on the domestic market once we exceed 2,000 tonnes,” he said according to media reports.

Russia imports around 150,000 tonnes of cheese every year, Mr Gigoyan said, half from the EU. With economists downgrading Armenia’s economic growth prospects, news of a potential gap in the market has to be welcome. The Armenian consumer, though, who may find that the price of cheese has increased in supermarkets may not agree.

ENDS

(News report from Issue No. 201, published on Sept. 24 2014)

New Russian route for Tajik migrants

SEPT. 12 2014 (The Conway Bulletin) – Asian Express Airline, a private airline, will fly two return flights next month to the city of Barnaul in Russia’s Siberia from Dushanbe for migrant Tajik workers, media reported. The new route shows the economic power and importance of remittances from migrant workers to the Tajik economy.

ENDS

(News report from Issue No. 200, published on Sept.17 2014)

Uzbek car sales to Russia fall

SEPT. 11 2014 (The Conway Bulletin) – GM Uzbekistan sold 20% fewer cars in Russia between January and August this year than it did during the same period in 2013, media reported. Russia is GM Uzbekistan’s main market. The data is important as a macro indicator of how the slowdown in the Russian economy, because of sanctions, is impacting Central Asia.

ENDS

(News report from Issue No. 200, published on Sept.17 2014)

Inflation rises in Tajikistan

SEPT. 11 2014 (The Conway Bulletin) – Tajikistan’s Central Bank expects official inflation to hit 7.5% this year, double the figure for 2013, the ASIA-Plus website reported quoting a source at the Central Bank. Rising prices will place increased pressure on the authorities. Basic services are already strained in Tajikistan.

ENDS

(News report from Issue No. 200, published on Sept.17 2014)

Tajikistan to receive more investment

SEPT. 13 2014 (The Conway Bulletin) – China will boost its total investment in Tajikistan to $3b within four years, a massive amount for the country, media reported quoting the Tajik presidential press service. Tajikistan’s entire annual GDP is roughly $3b. The leaders of Tajikistan and China met after the SCO summit in Dushanbe.

ENDS

(News report from Issue No. 200, published on Sept.17 2014)

Turkmen GDP still growing

SEPT. 13 2014 (The Conway Bulletin) – The Central Banks of Central Asia have been warning of slowing economic growth because of the impact of sanctions on Russia.

Remittances from workers living in Russia are falling, manufacturing imports from Russia have dropped and Russian petrol supplies have reduced, driving up overall inflation.

There is no panic, yet, but there is a lot of great concern.

Except in Turkmenistan. Its economy has virtually decoupled itself from Russia. A row over gas prices forced Turkmenistan to look for new clients several years ago. Now China it its major client.

Russia is still a client, as well as a handful of other countries, but China holds most sway.

Turkmenistan underlined its different trajectory when it announced that GDP between January and July in 2014 had risen by 10.3%, one of the fastest growth rates in the world. For now, at least, China appears to be good partner, especially compared to Russia.

ENDS

(News report from Issue No. 200, published on Sept.17 2014)

Kyrgyzstan avoids energy rate rise

SEPT. 16 2014 (The Conway Bulletin) – Energy tariffs will rise in Kyrgyzstan, but only for certain users, the country’s energy minister told parliament.

Kyrgyzstan’s electricity, at $0.1 per Killowatt/hour (kw/h), is cheaper than the cost of its production and 1-1/2 times cheaper than in Tajikistan, the former Soviet country with the next cheapest electricity.

But government’s attempts to explain this fall on deaf ears. Ex-president Kurmanbek Bakiyev was ejected from power in 2010 following substantial energy hikes that were subsequently reversed by the interim government that took power.

The current increases, target users of three-phase- systems that are used to heat private houses. They will pay 0.02 USD per kilowatt/hour.

These targeted increases will not provide the funds required to repair a failing grid, and will be insufficient to prevent scheduled electricity shutoffs during the heating season this winter. The Toktogul reservoir, that feeds a Hydroelectric plant powering most of the country is at its lowest level since the Bakiyev period.

ENDS

(News report from Issue No. 200, published on Sept.17 2014)

Azerbaijan’s SOCAR to complete Greek deal

SEPT. 11 2014 (The Conway Bulletin) – Azerbaijan’s state energy company SOCAR is expected to complete the deal to buy the Greek state gas operator DESFA by the end of this month, SOCAR head Rovnag Abdullayev said. SOCAR agreed to buy a 66% stake in DESFA in 2013. The EU is currently considering it.

ENDS

(News report from Issue No. 200, published on Sept.17 2014)