Tag Archives: economy

Economy worsens in Turkmenistan

OCT. 20 2016 (The Conway Bulletin) — The Eurasianet website reported that prices of basic foodstuffs are spiraling in Turkmenistan as the economy buckles under inflationary pressure linked to a sharp economic downturn. It also said that the government has had to cancel a series of construction projects to save money. It didn’t give any details of the particular contracts which had been cancelled. The Turkmen government has not commented.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Georgia’s trade with Russia rises

OCT. 16 2016 (The Conway Bulletin) — Georgia’s trade turnover with Russia continued to rise as relations between the two neighbours improves. Geostat, the state statistics agency, said that exports to Russia increased by nearly 18% to $612m in the first nine months of the year and imports from Russia were up nearly 15% at $480m.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Inflation picks up in Armenia

OCT. 10 2016 (The Conway Bulletin) – After seven months of deflation, some prices in Armenia have started to rise, the Statistics Committee said. Food prices decreased marginally, but non-food items and the service sectors registered inflation of around 1%.

ENDS

(News report from Issue No. 300, published on Oct. 14 2016)

Trade between Georgia and S. Arabia rises

OCT. 11 2016 (The Conway Bulletin) – Trade turnover between Georgia and Saudi Arabia has increased, the two countries’ diplomatic corps said at a meeting in London. Saudi investment into Georgia reached $100m in the first nine months of the year and total trade turnover has doubled. Tourism is also on the rise, with visits from Saudi Arabia to Georgia likely to triple.

ENDS

(News report from Issue No. 300, published on Oct. 14 2016)

Uzbekistan asks for a new loan from World Bank

OCT. 4 2016 (The Conway Bulletin) – During a visit to Uzbekistan by the World Bank’s new regional director for Central Asia, Lilia Burunciuc, the Uzbek ministry of economy asked for a $100m loan to improve the country’s job market. The ministry said it wanted to create around 500,000 new, sustainable jobs over the next five years. In June, the World Bank committed to a new partnership with Uzbekistan, earmarking around $3b for a vast range of projects.

ENDS

(News report from Issue No. 299, published on Oct. 7 2016)

Comment: Regional economies begin to steady, writes Sorbello

OCT. 7 2016 (The Conway Bulletin) — Central Banks across Central Asia and the South Caucasus seem to have switched off their crisis mode, as inflation slows, oil prices pick up and remittances begin to regenerate.

Excited about the imminent re-start of the Kashagan offshore oil project, Kazakhstan is looking stronger, after months of uncertainty regarding its currency and its budget stability.

An important sign of the country’s recovering health was the rate cut by Kazakhstan’s Central Bank this week, which said that with inflation back into the 6 – 8% band that it was targeting and that monetary policy could be eased.

This decision has been in the Central Banker’s thinking over the past few weeks. That much is clear. Daniyar Akishev has been showing, for the first time, a more confident and determined tone.

And countries less impacted by oil prices, from Armenia to Kyrgyzstan, have also tried to boost their rather slow economic activity by lowering or keeping low interest rates in the past weeks.

All currencies from the region have been hit by a stronger US dollar over the past two years, and their depreciation led inevitably to a sharp increase in consumer prices.

Some — such as Azerbaijan, Kazakhstan, Kyrgyzstan and Georgia — needed strong monetary interventions. Others, such as Tajikistan, Armenia and Uzbekistan stabilised at a comparatively faster pace.

Last month, Russia’s Central Bank said migrant worker remittances to Kyrgyzstan had increased by 21%, reflecting a higher migration rate. On the other hand remittances to Tajikistan and Uzbekistan fell because of a drop in the number of migrants. Perhaps this is the Eurasian Economic Union effect?

Kyrgyzstan and Tajikistan are among the top remittance-dependent countries in the world.

As the ship seems steadier, however, countries across the region will have to cope with more domestic problems, chiefly in the banking sector and other private sectors hit hard by the economic downturn.

As shown this week with the bankruptcy of Bank Standard, Azerbaijan’s financial sector doesn’t seem to have fully recovered from the crisis. And in western Kazakhstan, where oil is the job creator, a month-long strike just ended with the workers obtaining higher salaries and the company winning state tenders. There is still work to do.

By Paolo Sorbello, Deputy editor, The Conway Bulletin

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(News report from Issue No. 299, published on Oct. 7 2016)

Kazakhstan cuts interest rates

ALMATY, OCT. 3 2016 (The Conway Bulletin) — Kazakhstan’s Central Bank cut interest rates by 50 basis points to 12.5%, its third rate cut this year, saying that slower inflation and a renewed confidence in the local currency were signs of economic recovery.

Most analysts were taken by surprise by the Central Bank’s decision, although Daniyar Akishev, the Bank’s chief, had hinted at possible rate reductions in recent weeks.

And the Central Bank said that another rate cut was likely at the next policy meeting in November .

“If the slowdown in inflation continues and stable growth in tenge deposits is confirmed, a reduction in the base rate before year-end isn’t excluded,” the Bank said its statement on the rate cut.

Inflation, which had reached 17% in annualised terms, has slowed to 5.6% in the first nine months of 2016, prompting the rate cut.

In the past nine months, the tenge/US dollar exchange rate improved by 14%, contributing to increased stability.

The tenge had lost half of its value overnight in August 2015, when the Central Bank ditched the peg to the US dollar. Months of uncertainty followed, sending the tenge further down and prompting successive rate increases.

Since the appointment of Mr Akishev in November last year and the stabilisation in oil prices at around $50, up from $27 at the start of the year, confidence in the country’s economy has slowly strengthened and recovered.

Oil is the cornerstone of Kazakhstan’s economy. The collapse in oil prices from around $110 per barrel in 2014 to $40 had undermined its prospects.

ENDS

(News report from Issue No. 299, published on Oct. 7 2016)

Average income drops in Kazakhstan

SEPT. 30 2016 (The Conway Bulletin) – High inflation over the past year has brought down average income for Kazakhs, according to the Statistics Committee. Average revenues per person in Kazakhstan for the first six months of the year grew by 12% compared to the same period in 2015, but a 16.8% growth in consumer good prices meant that average purchasing power decreased.

ENDS

(News report from Issue No. 299, published on Oct. 7 2016)

Putin deals with Kazakh President

OCT. 4 2016 (The Conway Bulletin) – Russian President Vladimir Putin and Kazakh President Nursultan Nazarbayev met in Astana at the Kazakhstan-Russia Business Forum and signed several bilateral agreements worth $4b. Both parties said they want to boost trade ties. No specific details of the deals were released.

ENDS

(News report from Issue No. 299, published on Oct. 7 2016)

Trade turnover improves in Armenia

OCT. 4 2016 (The Conway Bulletin) – Armenia’s Statistics Committee said that trade turnover improved during the first eight months of the year, compared to last year. Exports increased by 19% to $1.1b, while imports decreased by 2% to just below $2b, reducing the country’s trade deficit. Trade with CIS countries increased, while it remained flat with EU countries.

ENDS

(News report from Issue No. 299, published on Oct. 7 2016)