IMF Sees Incipient Recovery in the Caucasus and Central AsiaPress Release No. 10/209
May 25, 2010
Countries in the Caucasus and Central Asia (CCA) are seeing initial signs of recovery after being hit hard by the financial crisis in 2009, according to the International Monetary Fund’s (IMF) Regional Economic Outlook published today. The report forecasts the region’s overall economic growth to increase to 4.3 percent in 2010 after a 3.5 percent rise in 2009.
“The signs of recovery are there, albeit at an embryonic stage,” said Masood Ahmed, Director of the IMF’s Middle East and Central Asia Department. “Exports have begun to pick up, the decline in remittances appears to be slowing or reversing, and capital inflows have turned positive. However, these trends are far from uniform and, in a number of countries, stress in the banking sector is holding back credit growth and weighing on economic activity,” Mr. Ahmed said.