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Moody's: Middle Corridor strengthens economic resilience of Azerbaijan, Kazakhstan and Georgia

12 September 2025 12:19 (UTC +04:00)

The growing importance of the Middle Corridor has led to an improvement in some countries’ key credit indicators, APA-Economics, citing Moody’s.

It was noted that in the three main corridor countries — Azerbaijan, Kazakhstan, and Georgia — the acceleration of real GDP growth has strengthened economic prospects, driven by the development of the transport and logistics sectors.

“Increasing infrastructure investments also benefit the wider economy through higher construction activity and employment. The manufacturing sector has attracted foreign investment for products such as locomotives, as well as higher value-added sectors including automotive, pharmaceuticals, and food processing, for both domestic and export purposes. Efforts to enhance the corridor’s green image through railway electrification and the integration of renewable energy have also spurred investment, supported by solar potential and wind energy opportunities in the Caspian Sea,” the rating agency’s latest report stated.

Moody’s experts believe these investments particularly contribute to the diversification of the economy in Azerbaijan — which remains highly dependent on oil and gas — and, to some extent, in Kazakhstan, thereby making them more resilient to oil price volatility. In recent years, non-oil real GDP growth has been stable and has even offset the decline in hydrocarbon sector output.