The Asian Development Bank (ADB) has raised its economic growth and inflation forecasts for the Caucasus and Central Asia, APA-Economics reports, citing ADB.
According to the bank’s December update, the subregion’s growth forecast for 2025 has been raised to 5.8%, and for 2026 to 5.0%. These figures were 5.5% and 4.9%, respectively, in the September forecasts.
According to the information, the upward revision of the forecast is mainly related to stronger-than-expected economic activity in Kazakhstan. It was noted that in the third quarter of 2025, economic growth in most countries of the subregion exceeded expectations against the backdrop of state investments, increased remittances, stronger domestic demand, and macroeconomic stability.
ADB has also raised its inflation forecasts. For the subregion, inflation for the current year was raised from 7.7% to 8.0%, and for 2026 from 6.6% to 7.1%. The increase is explained by stronger inflationary pressures in Kazakhstan and Kyrgyzstan due to rising food and service prices, higher utility tariffs, and currency depreciation.
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