Uzbekistan has a favorable outlook for the investment environment among the states of the South Caucasus and Central Asia

Almaty. March 17. Silkroadnews – Uzbekistan has a favorable outlook for the investment environment among the countries of Central Asia and the South Caucasus, report prepared by the expert center “Eurasian Development” says.

“The assessment was based on the analysis of development of the region’s states, evaluation of sustainability of the political institutions’ performance, economic potentials, openness and “friendliness” with regard to domestic and foreign investors”, Kommersant newspaper writes quoting the report.

Thus, the rating considered eight states of Central Asia and the South Caucasus – Kazakhstan, Azerbaijan, Uzbekistan, Georgia, Kyrgyzstan, Armenia, Tajikistan and Turkmenistan.

As noted in the report, Kazakhstan, ranking the first, has a strong economic potential, a capacious market, is abundant in natural resources reserves and has a legislative base focused on attracting investors. With this, however, the experts say, there is a corruption that turns the forecast for Kazakhstan to be a “rather negative”.

Azerbaijan ranks second, yet, the final forecast for the investment environment is characterized as negative.

The researchers assign Uzbekistan’s third place to, first of all, a capacious domestic market (more than 30 million people), one’s own resource base and political stability. Among the negative factors there are corruption and bureaucracy, social contradictions, low purchasing power of the population, a non-liberalized currency market listed. However, “taking into account the plans announced by the government, the outlook for Uzbekistan will be a favorable”.

Georgia is on the fourth position. The forecast for the country’s investment climate is neutral.

Kyrgyzstan, according to the report, ranks fifth due to relatively liberal legislation, cheap labor, favorable conditions for development of agriculture, light industry and tourism, active participation in the EEU activities. At the same time, the rating authors note, there is the state’s political course has no continuity, the risks of political instability and spread of Islamist ideology are high. Thus, the outlook for Kyrgyzstan will be a negative given the forthcoming presidential election in 2017.

Armenia, Tajikistan and Turkmenistan rank the sixth, seventh and eighth, respectively, given the negative forecast for the investment climate.