According to him, demographic growth will become a driver of economic development, but it will require serious transformations in the field of energy efficiency, transport and water resources management.
The head of the EDB noted that the region is one of the most vulnerable to climate change. According to forecasts, by 2028, the water deficit may range from 5 to 12 cubic meters per year. A significant part of water resources is lost due to worn-out infrastructure. The Bank participates in financing projects for the modernization of irrigation systems, the introduction of water-saving technologies and digital water metering.
Separately, Podguzov emphasized the influence of the geographical factor: the region is more than 3,000 km away from ocean ports, which increases the cost of trade by 20-40% and annually reduces economic growth by up to 1.5 percentage points. The solution may be to increase transport connectivity, including the implementation of the concept of the Eurasian Transport Framework - a network of corridors to reduce logistical costs and accelerate trade.
According to the bank, in addition to the east-west directions, the north-south routes are important, as well as the potential Trans-Afghan corridor, which will open access to the markets of South Asia and the Persian Gulf to the countries of the region.
Central Asia remains one of the fastest growing regions in the world. In 2026, the combined economy of the five countries could reach $600 billion. At the same time, further development is directly related to addressing key challenges such as demographic growth, transport connectivity, and water resources.
