„Central Asia remains a region on the move“
In an interview to CT Executive Research, Vladimir Nikitenko, Regional Director for Central Asia at the German Eastern Business Association, discussed the prospects for economic development in Central Asian countries and highlighted Kazakhstan’s growing role in cooperation with Germany.
How would you evaluate the current economic landscape of the Central Asian states, and what key trends do you anticipate emerging in the coming years?
Economic development in Central Asia remains remarkable. With a population of around 80 million, the five countries in the region form a large, albeit still heterogeneous, market. All countries are working hard to diversify their economies and expand their industrial base, while simultaneously maintaining a delicate equilibrium in their engagements with China, Russia and the European Union.
Central Asia is increasingly coming into the international spotlight in light of global power shifts, not least because of its strategic location as a bridge between Europe and Asia, and its rich natural resources. The region’s economies are on a clear growth path: average growth rates have been around 7% in recent years, and international institutions expect stable growth to continue in 2026.
Where do you see the greatest opportunities for German companies in Central Asia over the next five years?
Over the next five years, German companies will see great opportunities in many areas in Central Asia. There is enormous pressure for reform in the energy and water sectors: the countries in the region need to modernise their energy supply and at the same time manage their water resources more sustainably. This is creating a broad demand for German expertise. Projects in the field of green energy are currently developing particularly dynamically – from the construction of new solar and wind farms to pilot projects in the field of green hydrogen.
New prospects are also emerging in the raw materials industry. Kazakhstan is investing in the development and processing of critical minerals and aims to become a long-term alternative to China for rare earths. This is a very important project for Germany. Initial projects involving German technology partners, for example in potassium extraction, demonstrate the potential of this cooperation.
Geographically, the region acts as a link between the European Union (EU) and the emerging markets in Southeast Asia. Although the so-called Middle Corridor across the Caspian Sea poses a logistical challenge due to the necessary transhipment processes (road/rail – ship – road/rail), it offers considerable growth potential in view of geopolitical developments. Logistics, construction and infrastructure are expanding, driven by a young population, growing urbanisation and increasing investment activity.
The full interview with Vladimir Nikitenko is available via the link.