Tag Archives: economy

Azerbaijan’s daily oil production will increase -EIA

MARCH 11 (The Bulletin) — The US Energy Information Agency (EIA) increased its forecast for Azerbaijan’s oil production to 770,000 barrels per day (bpd) in 2021, up 40,000bpd from an earlier forecast. The increase is linked to a relaxation of oil production limits that the Saudi-led oil cartel OPEC and its FSU supporters, Russia, Kazakhstan and Azerbaijan, introduced last month. Limits had been imposed to push up oil prices. In 2020, during the oil production limits, Azerbaijan had produced 710,000bpd. Oil revenues form the backbone of Azerbaijan’s economy.

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— This story was published in issue 475 of the Central Asia & South Caucasus Bulletin, on March 15 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

OPEC agrees to allow Kazakhstan to increase its oil production quota

MARCH 5 2021 (The Bulletin) — OPEC, the Saudi Arabia-dominated oil exporting group agreed to allow Kazakhstan to raise its output. OPEC members had cut production to boost oil prices. Now that prices have increased, Brent crude is at around $69/barrel — its highest since the end of 2019, OPEC has loosened restrictions. Azerbaijan and Kazakhstan, along with Russia, are not OPEC members but had gone along with the cuts. From April, Kazakhstan can boost its output by 20,000 barrels of oil per day (bpd), up from its current level of 1,437,000bpd. Azerbaijan, though, has agreed to maintain its output at 595,000 bpd.

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— This story was published in issue 474 of the Central Asia & South Caucasus Bulletin, on March 5 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Car imports to Azeraijan rise despite coronavirus pandemic

MARCH 4 2021 (The Bulletin) — Despite the damage to Azerbaijan’s economy from the coronavirus pandemic, car imports increased last year to 53,729 from 47,709, a rise of 12%, Safar Mehdiyev, chairman of the Azerbaijani state customs committee, said. This is double the number of car imports into Azerbaijan compared to 2018. 

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— This story was published in issue 474 of the Central Asia & South Caucasus Bulletin, on March 5 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kazakhstan wants more foreign investment in its agriculture

MARCH 2 2021 (The Bulletin) — Kazakhstan wants to attract investments of $9.5b in its agricultural sector by 2025, PM Askar Mamin said during a government meeting. The Kazakh government sees its agricultural sector as an underused resource that could be doing more to attract foreign investors. Some Western companies have already invested in cattle farms to sell beef across Central Asia, where it is growing in popularity, and also to China. 

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— This story was published in issue 474 of the Central Asia & South Caucasus Bulletin, on March 5 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Manufacturing confidence in Kazakhstan is recovering

MARCH 1 2021  (The Bulletin) — Kazakhstan’s Tengri Partners/IHS Market PMI index, a measure of manufacturing confidence, increased to 48.5 in February from a nine month low of 45.6 in January. Explaining the data, Anuar Ushbayev, managing partner at Tengri Partners, said that sentiment reflected a slowing of the economic downturn linked to the coronavirus pandemic.

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— This story was published in issue 474 of the Central Asia & South Caucasus Bulletin, on March 5 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kyrgyzstan increases interest rate by 0.5%

FEB. 24 2021 (The Bulletin) — Kyrgyzstan’s Central Bank increased its key interest rate by half a percentage point to 5.5% to counter rising inflation, its first rise since February 2020. The coronavirus pandemic and a coup in October has pressured the Kyrgyz som which is trading at around 84/$1, a fall of around 20%. This fall in the value of the som has pushed up inflation.

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— This story was published in issue 474 of the Central Asia & South Caucasus Bulletin, on March 5 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Eurasian Economic Union wants to streamline migrant worker processes

ALMATY/FEB. 5 2021 (The Bulletin) —  The Eurasian Economic Union (EAEU) wants to speed up the digitalisation of labour migrants’ documents to help member states recover from the impact of the coronavirus pandemic. 

At a meeting of heads of governments of EAEU member states in Almaty, Russian PM Mikhail Mishustin said that reviving labour markets, cutting down on paperwork through digital records and providing vaccines so that people can travel for work was vitally important for the bloc.

“This is a single service that you can use to find vacancies, draw up the necessary documents, including medical insurance and it will also help with the choice of housing,” he said of a digitalisation plan. 

Critics of the EAEU — which has been in operation since 2015 and, alongside Russia includes Kazakhstan, Belarus, Armenia and Kyrgyzstan as members — have said that the bloc pushes the Kremlin’s agenda and that it is cumbersome, creates red tape and is slow to get things done.

They also said that the plan put forward by Mr Mishustin may be a case in point. He envisages it coming into action in 2022. 

But pressure is building on the EAEU to reform and to become more nimble.  At the Almaty meeting, Kyrgyz’s PM Ulubek Maripov described the need to tear down barriers that slow labour movement in the EAEU as “acute”.

Russia attracts millions of labour migrants from Central Asia each year, generating huge remittance flows. This dried up in 2020 because of the pandemic. Businesses in Russia now complain about a lack of cheap labour and in Central Asia, governments report a sharp drop in remittances.

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— This story was first published in issue 471 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Armenian Central Bank raises interest rate to support currency

FEB. 2/3 2021 (The Bulletin) — Armenia’s Central Bank raised its key interest rate to 5.5% from 5.25% to strengthen its currency, the dram, which has dropped 6% since it lost a war against Azerbaijan for control of Nagorno-Karabakh last year. In neighbouring Georgia, the Central Bank there kept its key interest rate steady at 8% because it said that inflation had stalled because of the pandemic. 

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— This story was first published in issue 471 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Exports from Central Asia to China fall

JAN. 22 2021 (The Bulletin) — Exports from Central Asia to China plummeted in 2020, Chinese data showed, because of a drop in demand for products and the closure of borders as countries tried to stall the spread of the coronavirus pandemic. The data showed that exports from Tajikistan and Kyrgyzstan dropped by around 47% and from Turkmenistan and Uzbekistan by around 30%. 

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Coronavirus pandemic supresses inflation in Uzbekistan

JAN. 21 2021 (The Bulletin) — The annual rate of inflation in Uzbekistan slowed to 11.1% in 2020 from 15.2% in 2019 because of a drop in demand linked to the coronavirus pandemic, Uzbekistan’s Central Bank said in a statement explaining why it kept interest rates steady at 14%. The exception to this drop in inflation was food prices which continued to rise. The Central Bank said, for example, that eggs rose in price by 42%. 

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021