Moody's, a rating agency, has upgraded Kazakhstan's sovereign rating outlook from "stable" to "positive."
According to reuters, this change is attributed to Kazakhstan's substantial progress in economic diversification and its growing role as a transport and logistics hub within the Middle Corridor, an alternative China-Europe cargo route that avoids Russia.
Moody's explained that the "positive outlook" is based on their assessment that Kazakhstan's increasing importance in the Middle Corridor enhances its ability to withstand economic or financial shocks, potentially leading to a higher rating.
The Middle Corridor, endorsed by Western countries as a Russia-avoiding cargo route between China and Europe, includes Kazakhstan, Azerbaijan, Georgia, and Turkey.
Moody's also pointed out Kazakhstan's efforts to expand its international footprint and reduce its reliance on Russia. This includes establishing stronger economic ties with the European Union and its member countries, particularly in the supply of critical raw materials and environmentally friendly initiatives. Kazakhstan is also pursuing partnerships with Middle Eastern nations in trade, investments, and infrastructure development.
Kazakhstan is actively exploring various transportation routes for its oil exports, such as collaborating with Azerbaijan and utilizing the Druzhba pipeline to supply oil to Germany. Moody's believes these initiatives are likely to diversify Kazakhstan's economic partnerships, offering growth potential.
Georgian Economy Minister Levan Davitashvili highlighted ongoing efforts to address the corridor's shortcomings at the Tbilisi Silk Road Forum. He noted positive developments in cargo flows, with a remarkable 20% growth in the past year, indicating a promising outlook.
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