Trans-Caspian Corridor to Boost Uzbekistan's Trade
Global Newsflix 1 min read
The World Bank estimates that the Trans-Caspian corridor could increase Uzbekistan's trade by US$93 billion by 2040, with major infrastructure investments planned. Uzbekistan has the largest priority investment portfolio among the corridor countries, worth US$11.5 billion. The corridor connects nine countries, including Armenia, Azerbaijan, and Kazakhstan, and is expected to see significant growth in trade and exports.
Key facts
- The Trans-Caspian corridor could increase Uzbekistan's trade by US$93 billion by 2040.
- Uzbekistan has the largest priority investment portfolio among the corridor countries, worth US$11.5 billion.
- The corridor connects nine countries, including Armenia, Azerbaijan, and Kazakhstan.
Three perspectives
Neutral
The World Bank report models trade, freight, and economic effects for the nine countries along the corridor, forecasting a 1.5-fold increase in trade by value and a 60% increase in physical terms between 2023 and 2040. Results vary significantly by country, with Uzbekistan expected to lead growth in exports and imports. The report highlights the importance of infrastructure initiatives and rising consumption in driving trade growth.
Positive
The Trans-Caspian corridor presents opportunities for economic growth and development in the region, with Uzbekistan set to benefit from significant increases in trade and exports. The corridor's infrastructure investments are expected to drive growth in industries such as textiles, vehicles, and machinery. Uzbekistan's exports are also expected to grow in sectors such as cotton, copper, and fruit.
Negative
The World Bank warns that high trade costs, limited infrastructure, and fragmented logistics could slow the transition to higher value-added goods. The report highlights the need for continued investment in infrastructure and logistics to support trade growth. Uzbekistan's reliance on hydrocarbons, metals, and other bulk commodities may also limit its ability to diversify its exports.