Services remained a main driving force to overall CAREC economic growth
CAREC Institute
We promote economic cooperation in Central Asia and along the Silk Road through knowledge generation and sharing.
Average CAREC value added growth in services re-accelerated in H1 2024 from growth in 2023, which was lower than in 2022 but still quite high. Average CAREC growth in services at constant prices turned out to be 6.6% yoy in Q1 2024 and 8.4% yoy in Q2 2024 compared to 6.5% yoy in 2023 and 9.0% yoy in 2022 (see the Figure). The Kyrgyz Republic, Georgia, and Mongolia all had double digit growth in Q2 2024, and Azerbaijan at 9.7% yoy almost. This was predominately driven by trade, tourism, hotels and restaurants, information and communication. Services growth in other CAREC members reached at least 3% yoy and was significantly higher in some. For Pakistan and Azerbaijan this was a turn-around after weak, and even negative growth in some quarters of 2023.
Figure. GDP by origin: Services (%, yoy)