The economic crisis that has befallen Russia since the imposition of US/EU sanctions in 2014, has sent shockwaves through Russia’s business and economic sectors. Russia’s financial crisis has produced a contagious effect in Central Asia, where cheap oil is exacerbating the poor economic outlook.
In the light of the perfect storm that is hitting Russia, Central Asia will face more than a few squalls.
In the light of the perfect storm that is hitting Russia, Central Asia will face more than a few squalls. Recently, The International Monetary Fund (IMF) downgraded the economic outlook of post-Soviet countries. The IMF is forecasting that Central Asian oil- and gas -exporting countries – Turkmenistan, Kazakhstan and Uzbekistan – will expand by 4.9% (-0.8%) in 2015 while energy importers Tajikistan and Kyrgyzstan are expected to grow by 4.4% (-0.4%). But the five Central Asian states aren’t equally affected by Russia’s decline. This is due to the various levels of integration with their northern neighbour. Indeed, Turkmenistan’s isolation has thus far cushioned it from most spill-over effects, while the other four countries are showing varying degrees of socio-economic ramifications.
