IMF: Middle Corridor to strengthen integration of South Caucasus, Central Asian countries into global economy

Potential investments in the Middle Corridor and opportunities to expand trade with China, Europe, and the Middle East offer the countries of the South Caucasus and Central Asia a path to strengthen their integration into the global economy, Director of the IMF's Middle East and Central Asia Department Jihad Azour said during a briefing on the Regional Economic Outlook in the Middle East and Central Asia, Report informs.

According to the IMF official, states in the region are already investing heavily in infrastructure development, though the process takes time.

"The potential of the Middle Corridor and the expansion of trade with China, Europe, and the Middle East present broad opportunities for the Caucasus and Central Asian countries to boost their global economic integration," Azour said. "Alongside infrastructure investments, improving the institutional framework, scaling up the private sector, reforming state-owned enterprises, and optimizing the state's role in the economy remain key conditions for successful integration."

He noted that the region has benefited from the redirection of investment and migration flows, increased capital investment, and shifting logistics routes.

"As a result, economic growth rates in these countries have been higher in recent years than in most other states in the region. Although we forecast that growth rates will gradually converge in 2026–2027, we also observe certain differences in the economic dynamics of individual countries," he added.