The Middle Corridor is contributing to the development of Azerbaijan, Kazakhstan and Georgia, according to a report by international rating agency Moody's.
It notes that in Central Asia and the Caucasus, investment in transport, logistics and energy will help diversify economies and support growth in the medium term.
"Growing activity along the Middle Corridor, which runs through Central Asia and the Caucasus, is increasingly contributing to the development of Kazakhstan, Azerbaijan and Georgia, with broader benefits also extending to Uzbekistan and the Kyrgyz Republic. Projects such as the China–Kyrgyz Republic–Uzbekistan railway are strengthening the region's integration with Europe, China and the Persian Gulf countries. Economic growth is also moving beyond extractive industries: in Central Asia, the services sector, manufacturing and construction are becoming increasingly important, while in Armenia and Georgia, information and communication technology, financial services and tourism are expanding," the agency's report says.
According to Moody's, investment in renewable energy and cross-border electricity networks, including the Caspian Green Energy Corridor and the planned subsea cable across the Black Sea, is creating new sources of growth and strengthening the region's energy connectivity.
"Kazakhstan, Uzbekistan, Azerbaijan and Armenia are also investing in data centres, fibre-optic networks and computing infrastructure, which over time could help boost productivity and increase exports of higher value-added goods and services," the report notes.