BAKU, Azerbaijan, April 7. The conflict in the
Middle East could lead to an increase in transit traffic along the
Middle Corridor, Trend reports via the International Monetary Fund.
"An escalation of the conflict in the Middle East could lead to
a further decline in tourist flows from Israel and the Gulf
countries, intensify inflationary pressures, and tighten financial
conditions. “A more protracted conflict could lead to a redirection
of financial and tourist flows toward Georgia, as well as an
increase in transit through the Middle Corridor,” the fund’s report
states.
According to IMF analysts, a peaceful resolution in Ukraine
could partially reverse trends related to migration, financial
flows, and transit trade, while simultaneously contributing to
broader regional stability and confidence-building.
"Difficulties in relations with the European Union could
negatively affect investor sentiment and the volume of foreign
direct investment, while a planned real estate project worth $6.6
billion, being implemented by an investor from the United Arab
Emirates, represents significant potential for economic growth and
employment," the report states.
The Middle Corridor is a transport and trade route that passes
through a number of countries in the region and connects Asia with
Europe. It serves as an alternative to the traditional Northern and
Southern Corridors.
The route begins in China and runs through the countries of
Central Asia. It then crosses the Caspian Sea, Azerbaijan, Georgia,
and Türkiye, before reaching Europe. The Middle Corridor is a land
route that bypasses longer sea routes, connecting the eastern
regions of Asia, including China, with Europe.
