Bank analysts emphasize that significant efforts in energy efficiency, mobility modernization, and water resource management are necessary for the successful development of the region.
Podguzov outlined the significance of the region's geographical location: Central Asia is more than 3000 km away from ocean ports.
“This increases the cost of trade by 20-40%, resulting in an annual loss of up to 1.5 percentage points of growth. This can be seen as a ‘distance tax,’” he noted.
In his opinion, solving this problem is only possible by enhancing the transport connectivity of the region.
“Currently, the main transport routes are oriented from east to west. However, the north-south directions and the potential Trans-Afghan corridor are also of immense importance. They can open access for the region to the markets of South Asia and the Persian Gulf,” Podguzov added.
According to EDB data, Central Asia is one of the most dynamically developing regions in the world, and by 2026, the combined GDP of the five countries in the region could reach $600 billion.
