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High-level representatives from the European Bank for Reconstruction and Development (EBRD) discussed the process of transition in the EBRD region and the latest economic forecast in Bishkek this week.

 

The EBRD was represented by Agris Preimanis, Lead Economist for Central Asia, and Larisa Manastirli, Head of Resident Office in Bishkek.

The Transition Report, an annual publication prepared by the EBRD’s Office of the Chief Economist, analyses the process of transition to open market-oriented economies in the countries where the Bank invests.

This year’s Transition Report looks at innovation by individual companies across the transition region and reveals how innovation can help increase productivity and economic growth, and re-energise transition. The Report takes a broad perspective on innovation – studying how firms innovate – and whether they do this by copying advanced economies or by developing products and processes themselves.

A key theme in the latest report is that regardless of a country’s level of economic development and regardless of its progress along the transition path, corporate managers can make decisions that have a profound effect on the efficiency and productivity of the businesses they run.

Governments can do a great deal to unleash this potential, but in order to determine the right measures for any given country they must work closely with the private sector.

The EBRD’s Regional Economic Prospects, a regular analysis and economic forecast, show that the dropping of oil prices and the softening of other commodity prices as well as recession in Russia has resulted in slowing growth in the Central Asian region. According to the EBRD’s forecast, Kyrgyz Republic’s GDP will grow by 3.0 per cent in 2015 and 3.1 per cent in 2016, compared to 3.6 per cent in 2014. The reduced growth reflects sharply lower remittances from Russia and more difficult external environment, depreciation of Russian Rouble and slowdown in Kazakhstan and other trading partners.