Large-scale investment in transport, logistics and energy infrastructure will be a key driver of economic diversification and medium-term growth across Central Asia and the Caucasus, Moody’s said.
According to the international rating agency, growing activity along the Trans-Caspian International Transport Route, known as the Middle Corridor, is already generating direct economic benefits for Kazakhstan, Azerbaijan and Georgia, Caliber.Az reports per local media.
The agency said the impact is also spreading to neighboring countries, including Uzbekistan and Kyrgyzstan. Strategic infrastructure projects, such as the China–Kyrgyzstan–Uzbekistan railway, are strengthening the region’s economic links with European, Chinese and Gulf markets.
Moody’s analysts noted that economic growth across the region is gradually expanding beyond traditional commodity sectors, with services, manufacturing and construction recording faster growth.
Countries are also increasing investment in renewable energy and cross-border electricity transmission infrastructure. Key projects include the Caspian Green Energy Corridor and a planned strategic submarine cable across the Black Sea, which are intended to expand power generation and strengthen regional energy connectivity.
“Furthermore, Kazakhstan, Uzbekistan, Azerbaijan and Armenia have embarked on large-scale investments in the development of data centres, fibre-optic backbone networks and modern computing infrastructure,” Moody’s analysts said.
According to the agency, technological modernisation could provide a strong foundation for higher labour productivity and increased exports of high-value-added products over the long term.
By Sabina Mammadli
