Tag Archives: economy

Tajikistan needs to improve labour

>>World Bank says Tajikistan needs to adapt>>

FEB. 4 2015 (The Conway Bulletin) — In a report on Tajikistan, the World Bank said a third of Tajik men leave the country to find work and that the informal market employs about 60% of the population.

Adapting local labour training to a market that needs analytical skills and not just manual work is key to developing Tajikistan’s workforce, the World Bank wrote.

The migration numbers and the large informal economy mean the Tajik economy is fragile, especially when its main driver — the Russian economy is also under stress.

The Tajik Central Bank has raised interest rates and depleted its currency reserves in an attempt to defend its currency from a sharp devaluation. It has warned that it can’t sustain a long, second defence of its economy.

In its report, entitled “The Skills Road: Skills for Employability in Tajikistan”, the World Bank argued that the Tajik economy is undergoing significant changes that need a new approach from the government to develop more and better analytical skills to boost the formal sector of the economy and also reduce migration trends.

“New economy skills are strong analytical and organizational skills, including non-routine cognitive analytical and interpersonal skills,” the World Bank wrote.

“The report’s conclusion is that the government could shift the focus from providing access to educational institutions and instead focus on providing the skills (cognitive, non-cognitive, and technical) to students who need to succeed as adults.”
ENDS

(News report from Issue No. 218, published on Feb. 11 2015)

Kyrgyz inflation hits 10%

JAN. 29 2015 (The Conway Bulletin) — Inflation in Kyrgyzstan has broken through the 10% barrier, a senior official at the national statistics office was quoted by media as saying. The official, Malika Abdukadirova, said annualised inflation hit 10.4% in December mainly because of a rise in the price of foodstuffs.
ENDS

(News report from Issue No. 217, published on Feb. 4 2015)

Azerbaijan cancels social projects

>>Fall in oil price has hit Azerbaijan hard

JAN. 29 2015 (The Conway Bulletin) — Azerbaijan’s government has cancelled a $100m project to provide rural communities with vastly improved and faster internet, media reported.

The fall in the price of oil prices has hit Azerbaijan hard. It is very much a petro-dollar economy and has had to adjust its budget to account for falling revenues.

The project was supposed to be funded by the state budget but it was, instead, one of the first to be cut when the budget was re-organised earlier this year.

And the project was supposed to be a major stepping stone to build a more integrated, connected society. Research in 2013 showed that only 500 of Azerbaijan’s 4,000 villages had access to the internet, a figure the government’s programme was supposed to improve.

Another project that the government has apparently reduced funding for is the Star refinery that it was building in Turkey. Instead, media reported, the Star oil refinery will be funded by foreign-backed debt.

Oil prices are critical to Azerbaijan. Last week BP, the biggest foreign investor in Azerbaijan, said that it was making 8% of its local workforce redundant.

The next few months are going to be important. While prices remain low, there could be more project cancellations to come.
ENDS

(News report from Issue No. 217, published on Feb. 4 2015)

Azerbaijan’s ratings downgraded

JAN. 30 2015 (The Conway Bulletin) — The ratings agency Standard & Poor’s downgraded Azerbaijan’s debt rating to negative from stable because of the fall in oil prices. It said 44% of Azerbaijan’s GDP and 95% of its exports were linked to the energy industry. Despite calls from various foreign institutions, Azerbaijan has failed to diversify.
ENDS

(News report from Issue No. 217, published on Feb. 4 2015)

Berdy worries about the economy

JAN. 30 2015 (The Conway Bulletin) — Perhaps even the phlegmatic Turkmen president Kurbanguly Berdymukhamedov is beginning to become unnerved by the sudden drop in energy prices. Media reported that he held an unprecedented TV broadcast in which he explained to ordinary Turkmens how he had been forced to devalue the manat currency (Jan. 30).
ENDS

(News report from Issue No. 217, published on Feb. 4 2015)

AcerlorMittal cuts workers’ salaries in Kazakhstan

FEB. 2 2015 (The Conway Bulletin) — ArcelorMittal, the Luxembourg-based steel manufacturer, said it had temporarily cut salaries for workers at its plant in Temirtau near Karaganda, central Kazakhstan, by 25. ArcelorMittal has struggled to make the plant profitable over the last few years. It has cut its workforce at the plant to 17,000 from over 20,000.
ENDS

(News report from Issue No. 217, published on Feb. 4 2015)

Ratings agencies downgrade Armenia

>>Armenia’s economy is closely linked to Russia’s fortunes>>

JAN. 30 2015 (The Conway Bulletin) — Ratings agencies Fitch and Moody’s downgraded Armenia’s bond ratings to negative from stable, another sign that the Armenian economy is in for a turbulent few months.

Fitch said that it expected Armenia’s economy to slip into a recession this year and the deficit to widen.

“Remittances amount to about 15% of GDP and fell by about 30% during the last months of 2014 as 90% of the total come from Russia,” it said in a research note.

Armenia has been hit by the drop in the Russian rouble and the turmoil in Russia’s economy, triggered by a fall in oil prices and sanctions imposed by the West after the Kremlin’s intervention in Ukraine.

Over the past seven months, Armenia’s dram currency has fallen by nearly 20% against the US dollar despite a steady increase in interest rates.

Of course, it’s not just Armenia which is exposed to the drop in Russia’s economy and currency. The rest of Central Asia and the South Caucasus have also been badly hit.

Armenia, though, is particularly closely linked. It is desperately hoping that there will be some improvement in Russia’s economy.
ENDS

(News report from Issue No. 217, published on Feb. 4 2015)

Kazakhs buy the rouble

>>Worries about devaluation drive Kazakhs to the rouble>>

FEB. 4 2015 (The Conway Bulletin) — People in Kazakhstan have been buying roubles at surprising rates over the past couple of months.

Exchange bureaus data shows that the demand for the Russian currency increased steadily in November and skyrocketed in December despite the rouble losing value against the Kazakh tenge (Jan. 28).

No official reason has been given for the rise in rouble demand but there are several plausible reasons. A Bulletin correspondent in Almaty said many Kazakhs see the ailing rouble as a cheap currency for cross-border shopping.

Of course, Kazakhs may also be speculating that the rouble is valued too cheaply at the moment and that it will rise in value. This is almost certainly true of its value against the Kazakh tenge.

The Kazakh Central Bank has vowed to avoid another devaluation of the tenge — it cut the value of its currency by 20% last year — but the market, and most people on the streets think that another sudden devaluation is inevitable.
ENDS

(News report from Issue No. 217, published on Feb. 4 2015)

Kazakhmys cuts projects

FEB. 3 2015 (The Conway Bulletin) — Kazakhmys, one of the biggest employers in Kazakhstan, said it was stopping work on a handful of side projects and making 2,000 people redundant. Kazakhmys’ main product is copper although it employs thousands more people in support businesses such as coal mining. The news piles more pressure on Kazakhstan’s economy.
ENDS

(News report from Issue No. 217, published on Feb. 4 2015)

Russia cuts Uzbek/Turkmen gas orders

FEB. 3 2015 (The Conway Bulletin) — Alexander Medvedev, vice-chairman of Gazprom, Russia’s gas monopoly, said the company would cut gas it buys from Turkmenistan and Uzbekistan. Mr Medvedev did not specify why Gazprom had cut its orders from Turkmenistan by 60% and from Uzbekistan by 75% but it may be linked to Russia’s economic downturn.
ENDS

(News report from Issue No. 217, published on Feb. 4 2015)